The New Patriotic Party under an Akufo Addo government is promising in its response to the 2016 budget to abolish a lot of taxes in various sectors of the economy.
The party today in a two hour address indicated the its position and response to the 2016 budget which was present to parliament by Finance Minister Seth Tekpe in November.
Addressing a crowd of party supporters and media Dr. Mahamudu Bawumia, the NPP’s running mate said the solution to fixing an ailing economy is not to over burden citizens with taxes in an attempt to generate more revenue.
“What we will not allow to happen is for the desire to generate revenue to kill businesses and cause unemployment” Dr. Bawumia said.
Below is the list of taxes the NPP is promising to eliminate when voted into power in 2016.
1. An NPP government is promising to reduce corporate tax rate from 25 to 20 percent.
2. The party also plants to abolish the VAT on financial services.
3. The NPP is also promising to abolish the VAT on real estate sales to allow the real estate sector to grow.
4. A promise to reduce Withholding taxes to 2008 levels to spare production.
5. Taxes on private tertiary institutions to be abolished.
6. The 19 cents per minute charge by telecommunication companies on international calls into Ghana will be eliminated.
7. Special import levy of 1.2 percent on imports will be removed to encourage production.
8. The party is also promising to remove import duties on raw materials.
9. Duties on imports of manufacturing equipment and spare parts will be removed.
10. Taxes on the aviation sector will be reviewed to make the airline industry more competitive.
11. Capital gains tax will be reduced to 10 percent
12. An enhanced employment tax credit scheme to provide incentives for companies employing fresh graduate will be introduced.
These tax reductions according to Dr. Bawumia will rather increase revenue generation and “the economics of that is very sound.”