Dr. Mahamudu Bawumia’s proposal to introduce a flat-rate tax system in Ghana, modeled after Estonia’s approach, is a significant policy shift aimed at simplifying tax administration and fostering business growth. By offering a clear and predictable tax obligation, businesses would find it easier to comply, potentially boosting compliance rates and reducing the administrative burden on both the government and taxpayers.
Moreover, his commitment to cut government expenditure by 3% of GDP (~GH₵30 billion) and redirect those funds towards private sector-led infrastructure development indicates a strategic focus on stimulating economic growth through private sector engagement. This plan, along with a Tax Amnesty Programme, aims to energize economic activity, enhance job creation, and stabilize the currency through the continued use of the gold purchase program.
These initiatives, if implemented, could have a profound impact on Ghana’s economic landscape, making it more business-friendly and attractive for investment.
