The flagbearer of the National Democratic Congress (NDC), John Mahama, has cautioned against false promises of tax relief by political candidates particularly the Presidential Candidate of the New Patriotic Party, Dr. Mahamudu Bawumia, and underscored the importance of scrutinizing such promises, especially considering the binding International Monetary Fund (IMF) agreement.
He underscored the terms of the IMF agreement, stating that by 2028, Ghana is expected to increase tax revenue to 24% of the Gross Domestic Product (GDP) from the current rate of approximately 17.7%.
Mr. Mahama pointed out that the current government has already implemented numerous taxes, bringing the country’s revenue closer to the target. However, any sudden removal of these taxes might jeopardize the ongoing review by the IMF, particularly the proposed application of the Value Added Tax (VAT) on electricity.
The former President raised concerns regarding the feasibility of the current government’s promises to remove these taxes only upon re-election and questioned how such commitments could be fulfilled while still complying with the ongoing IMF agreement, which extends beyond the next government’s term.
Mr. Mahama urged the government to take immediate action if they genuinely intended to provide tax relief, emphasizing the need for transparency and implementation prior to the elections and stressed the importance of collaboration with the business community to facilitate improved conditions for the growth of enterprises.
The NDC flagbearer questioned Vice President Dr. Bawumia’s promise to remove certain taxes, considering the ongoing IMF agreement, which will remain in effect for another one and a half years after the new government assumes office.
While former President Mahama acknowledged the possibility of discussing aspects of the agreement, he emphasized that the current government had willingly agreed to all the benchmarks outlined in the agreement.
He reiterated that while his party was not responsible for the existing agreement, they were open to discussions on modifying certain aspects once in power and admonished the public to remain cautious when evaluating promises made by political candidates and emphasized their commitment to working with traders and businesses to enhance the economic landscape.
Mr. Mahama therefore assured the traders’ association that his focus would be on working collaboratively to improve the business environment and support their endeavors.
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