In his quest to support Ghanaian businesses, Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has reaffirmed his commitment to introducing a flat-rate tax system in Ghana, modeled after Estonia’s approach.

He emphasized that this initiative would streamline tax administration by providing taxpayers with clear visibility into their tax obligations.

Dr. Bawumia further explained that a flat-rate system would simplify the process for businesses to file and pay taxes, thereby fostering growth.

During the launch of the party’s manifesto in Takoradi, Western Region, Dr. Bawumia pledged to reduce government expenditure by 3% of GDP if elected in the 2024 general elections.

“We will support businesses to drive and accelerate job creation by cutting 3% of GDP from government expenditure (approximately GH₵30 billion) and redirecting it towards the private sector for the provision of public infrastructure and services. By utilizing our proven gold purchase program, we will stabilize the currency, offer businesses and industries predictability in planning, and ensure stability in input prices.

We will introduce a flat-rate tax system in Ghana, similar to Estonia’s model. This will simplify tax administration by giving taxpayers transparency in their tax obligations, making it easier to file and pay taxes.

Additionally, we will complement the flat tax regime with a Tax Amnesty Program to enable industries to finance their expansion, recruit more employees, and stimulate economic activity.”