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Ghana will have lowest tax rate in ECOWAS under my presidency – Alan
The founder and leader of the Movement for Change, Alan Kyerematen, has pledged to abolish several taxes imposed on imports that he said are unnecessary and a huge burden to the trading community.
Mr. Kyerematen made the pledge in an engagement with members of the Ghana Union of Traders Association (GUTA).
He said the abolishment of such taxes and levies would make Ghana the country within the ECOWAS subregion with the lowest tax regime.
“Under my presidency, Ghana will have the lowest tax rate regime in ECOWAS,” he said.
Outlining a raft of radical tax measures to realign and reduce the burden of taxes on Ghanaians, especially on imports, Mr. Kyerematen said immediate measures will include consolidating the existing NHIL & GETFund levies at the ports into the calculation of a new VAT rate, and the abolition of the Special Import Levy of 2%, COVID-19 Health Recovery Levy and the Ghana Health Service Disinfection Fee.
Recognising the level of stress and difficulties faced by the Ghanaian business owner, which is ultimately transferred to the customer, Mr. Kyerematen stressed the importance of easing the business environment for traders as a means of improving the livelihoods of ordinary Ghanaians.
“Until government creates an enabling environment for private sector-led growth, the transformation that we so desire will continue to elude us,” he said.
In another groundbreaking and innovative approach, Alan Kyerematen intimated that a government under his leadership will shift from the current heavy reliance on indirect taxes to direct taxes.
“I will ensure a recalibration of the existing tax regime structure to optimize revenue mobilization from direct taxes (personal and corporate), and reduce over-reliance on indirect taxes (import duties, levies, and charges) to make the corporate sector more competitive and profitable,”he said.
Mr. Kyerematen based his remarks on the plans set out in his Great Transformational Plan (GTP) which seeks to move beyond mere promises of political party manifestos to actual plans that can deliver the vision of Ghanaians for a prosperous, united, and peaceful Ghana that provides equal opportunities for all, especially young people, women, and other vulnerable groups.
He promised that taxes and other charges on the importation of spare parts would be abolished two years into his administration.
Mr. Kyerematen further promised to undertake a comprehensive assessment of the relevance of all other administrative fees, service charges, and levies imposed at the ports will be undertaken.
Bemoaning the plethora of taxes that make doing business difficult in Ghana, the President of GUTA, Dr. Obeng, mentioned 22 different taxes apart from VAT, adding up to nearly 65% of the value of imports.
Moreover, over fourteen state agencies operate in the port, as well as various security agencies. This state of affairs drives up the cost of doing business, making businesses move to other ports, and encouraging unethical practices.
Source: Citinewsroom.com
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GEXIM deepens relations with US EXIM Bank
A management team of the Ghana Export – Import Bank (GEXIM) led by the Acting Chief Executive, Sylvester Mensah met with the leadership of the Export–Import Bank of the United States (US EXIM) on Wednesday April 23, 2025 in Washington DC, United States of America.
The Acting President and Chairman of US EXIM, Mr. James C. Cruse and Vice President, International Relations, Ms. Isabel Galdiz received the GEXIM delegation, which included Deputy CEO for Banking, Mr. Moses Klu Mensah and Head of International Cooperation, Mr. Jonathan Christopher Koney at the headquarters of US EXIM.
The meeting offered the GEXIM team the opportunity to share the strategic direction of the Bank in line with the resetting agenda of the President of the Republic, His Excellency John Dramani Mahama for the repositioning of the Ghanaian economy into an export-led one by providing the requisite investment to Ghanaian businesses.
Mr. James C. Cruse expressed US EXIM’s eagerness to deepen its existing relations with GEXIM and proposed the signing of a new Cooperative Framework Agreement following the expiration of a Memorandum of Understanding signed in 2019 to utilize US EXIM’s medium term loan guarantees to procure machinery by GEXIM for qualified Ghanaian Small and Medium-sized Enterprises (SMEs).
Mr.Sylvester Mensah thanked the Acting President and Chairman of US EXIM for hosting the GEXIM delegation and reaffirmed the Ghanaian government’s commitment to strengthening trade and investment between Ghana and its global partners for economic transformation of Ghana with GEXIM playing a pivotal role.
The two teams will be meeting on the sidelines of the 2025 US EXIM Annual Conference on 29th and April 30, 2025 to explore possible areas of collaboration and matching Ghanaian businesses to American companies. The meeting ended with an exchange of gifts.
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Many SOEs have been used as mere instruments for personal wealth accumulation –Pres.Mahama
President John Dramani Mahama has expressed concern over the misuse of State-Owned Enterprises (SOEs) for personal financial gain by individuals in leadership positions.
Speaking during a meeting with Chief Executives of specified entities under the State Interest and Governance Authority (SIGA) on Thursday, March 13, the President directly attributed the dire state of SOEs to their leadership, accusing chief executives, management teams, and governing boards of prioritising personal enrichment over organisational efficiency.
He pointed to bloated budgets, unjustified allowances, and unnecessary expenditures as factors draining public funds while SOEs continue to rely on government bailouts.
“Many SOEs have been used as mere instruments for personal wealth accumulation by appointees. The chief executives, management, and boards of these enterprises are responsible for this situation. Some SOEs have become perennial loss-makers, draining public funds with bloated budgets, unjustified allowances, and unnecessary expenditures while relying on government bailouts as if entitled to them. Many of these entities are at their lowest point in the entire history of the Fourth Republic,” he said.
President Mahama further noted that many SOEs have been plagued by inefficiencies, corruption, and mismanagement, leading to consistent financial losses. He cited the 2023 State Ownership Report by the State Interests and Governance Authority (SIGA), which highlighted systemic inefficiencies and wasteful expenditures within these entities.
He therefore reaffirmed his commitment to reforming under-performing SOEs and ensuring they serve national interests.
He warned that loss-making SOEs will no longer be tolerated and will either be merged, privatised, or closed.
“I will assess you based on your performance. If you do not align with the pace of the reset agenda, you may be asked to step aside. If that adds to the horror movie, so be it,” he added.
Source: Myjoyonline.com
