**Accra, Nov. 09, GNA** – Dr. Mahamudu Bawumia, Vice President and the New Patriotic Party's Flagbearer, has reaffirmed his commitment to fostering a business-friendly economic climate that supports the private sector's growth. He believes this approach is essential for transforming Ghana's economy under his leadership.
Speaking at a special dinner in Accra attended by CEOs and key figures in the private sector, Dr. Bawumia highlighted the crucial role that private enterprises play in economic development. He emphasized that sustainable growth is only achievable when businesses are thriving. "When businesses succeed, the economy flourishes, and vice versa," he stated. "A robust national economy anywhere in the world is backed by resilient businesses."
Dr. Bawumia expressed his determination to implement "bold solutions" aimed at promoting sustainable business growth. He outlined a vision to create innovative strategies for development, including plans to reform the current tax system, which he described as a barrier to business expansion. He proposed introducing a new, business-friendly tax regime to facilitate economic recovery, targeting a GDP growth rate of 5.6%.
Addressing the CEOs, he acknowledged their eagerness to capitalize on economic recovery while also facing challenges like heavy tax burdens and penalties. "I want to alleviate those pressures," he promised, pledging to introduce a radically new tax system starting in 2025.
**Key Steps to Revive the Economy:**
1. **Tax Amnesty:** Dr. Bawumia proposed offering a total tax amnesty for individuals and businesses that have not filed taxes in previous years, allowing them a fresh start. He expects beneficiaries to reinvest their savings into job creation and business growth.
2. **Flat Tax Rate:** He assured the CEOs that his government would introduce a simplified flat tax rate for individuals and businesses, with exemption thresholds to protect low-income earners. This would involve merging various levies into a single VAT item to streamline the process.
3. **Electronic Tax Filing:** Dr. Bawumia plans to mandate electronic tax returns, eliminating manual submissions and enhancing efficiency. He aims to introduce faceless assessments to boost transparency and compliance.
4. **Empowering the Private Sector:** His administration would encourage private sector involvement in public infrastructure projects, enabling businesses to finance, build, and lease essential services to the government. He emphasized leveraging government purchasing power to support private enterprises.
5. **Public-Private Partnerships (PPPs):** Bawumia aims to increase PPPs for public infrastructure, redirecting government expenditure towards private sector projects.
6. **Support for SMEs:** He proposed establishing an SME Bank to cater to small and medium-sized enterprises, which employ a significant portion of the population, especially women. Additionally, a Women’s Trade Empowerment Fund would be created to assist women-owned businesses.
7. **Investment Incentives:** Start-ups would receive Investment Tax Credits for their first three years, and efforts would be made to reduce electricity costs for industries.
8. **Competitive Port Charges:** Bawumia intends to lower port charges to enhance competitiveness with regional ports, particularly in Togo.
9. **Credit Scoring System:** He recently launched MyCredit Score, a personalized credit scoring initiative aimed at boosting domestic demand and production.
10. **Fintech Fund:** A proposed Fintech Fund would attract investments to support Ghanaian start-ups in developing financial services solutions.
11. **Digital Land Registration:** Completing the digitalization of land titling and registration will allow property owners to leverage their assets for business expansion.
Dr. Bawumia concluded by reaffirming his commitment to sustainable development, urging stakeholders to focus on long-term solutions rather than quick fixes. He stressed that sustainable development is essential for the younger generation, which constitutes a significant portion of Ghana's population, emphasizing the need for quality education, improved healthcare, and job creation.
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