Rédaction Africa Links 24 with Emmanuel Tornyi
Published on 2024-02-07 23:10:59
In a bid to transition to a cashless economy, the Vice President of Ghana, Dr. Mahamudu Bawumia, has announced plans to encourage the use of electronic payment channels and abolish taxes on digital payments. Speaking at a recent event, he revealed that the e-levy would be abolished under his administration to facilitate the move towards a cashless society. This announcement is part of the government’s efforts to modernize the country’s financial system and promote digital transactions.
In addition to the abolition of the e-levy, Dr. Bawumia unveiled his government’s intentions to revamp the tax system. This includes the elimination of emission tax, betting tax, and the proposed 15% value-added tax (VAT) on electricity tariffs. The target for the implementation of these changes is set for January 2025. These measures are aimed at reducing the tax burden on individuals and businesses while also creating a more favorable environment for economic growth.
Furthermore, the Vice President introduced plans for a simplified and business-friendly flat tax regime. This regime is designed to support both citizens and businesses, with a particular focus on aiding small and medium-scale enterprises (SMEs). The goal is to streamline the tax system and make it more conducive for businesses to thrive and contribute to the country’s economic development. By implementing a flat tax regime, the government aims to simplify the tax process and reduce the compliance burden on taxpayers.
Dr. Bawumia’s announcement has been met with positive reactions from various sectors of the economy. The move to abolish taxes on digital payments is seen as a significant step towards promoting the use of electronic payment channels and reducing the reliance on cash transactions. This, in turn, is expected to improve financial inclusion and reduce the informal economy.
The revamp of the tax system, including the elimination of certain taxes and the introduction of a flat tax regime, is also seen as a positive development. It is expected to make the tax system more efficient, transparent, and fair for both individuals and businesses. Additionally, the focus on supporting SMEs through the tax regime is seen as a strategic move to boost entrepreneurship and drive economic growth at the grassroots level.
Overall, Dr. Bawumia’s announcements reflect the government’s commitment to modernizing the country’s financial system and creating a more favorable business environment. By encouraging electronic payments, abolishing certain taxes, and introducing a simplified tax regime, the government aims to stimulate economic activity, promote financial inclusion, and support the growth of businesses, especially SMEs.
In conclusion, the Vice President’s plans to abolish the e-levy, revamp the tax system, and introduce a flat tax regime demonstrate a proactive approach towards modernizing the financial system and creating a more business-friendly environment in Ghana. These measures are expected to have a positive impact on the economy and contribute to sustainable growth and development in the country.
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