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RADP / Pulse Ghana  >  news  >  business

Nana Addo promises tax incentives to businesses

Abu Mubarik

In a room filled with party activists, former government officials and former president John Kuffour, Nana Addo also said it was "time to build a new, globally competitive economy with the NPP under my leadership" to a rapturous applause."

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Addressing what he termed as the 'Real State of the Nation' yesterday at the Physician and Surgeon College in Accra in the Greater Accra region, Nana Addo said: "My priority will be to reduce the cost of doing business to help small and medium-scale enterprises grow, and to make the Ghanaian economy become globally competitive."

"We will provide tax incentives for increasing productivity. We are opposed to NDC measures that cripple businesses and cause unemployment. My intention is to reduce corporate tax rate, abolish VAT on Financial Services, remove duties on the importation of raw materials and manufacturing equipment, amongst other fiscal incentives, to stimulate growth of the private sector."

According to him, "an enhanced employment Tax Credit Scheme to provide incentives for companies employing fresh graduates will be instituted."

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Nana Addo also said when he is voted for, his administration will institute fiscal reforms, including formalising the economy.

On fiscal reforms, he said "The passage and enforcement of a Fiscal Responsibility Act that has bite will be important in this regard. It will require governments to declare and commit to a fiscal policy that can be monitored. It will include fiscal rules, including rules governing election year spending, provisions for transparency and sanctions, including sanctions on the Executive."

He said formalisation of the economy will be pursued as a matter of strategy to expand the tax net. The elements of this formalization process that will be completed as a matter of priority, he said are:

i. National ID cards which this government has been unable to issue in 7 years after starving the National Identification Authority of funds will be issued in the first year.

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ii. Financial inclusion – Goal is to have 70% of the bankable population having bank accounts.

iii. The movement from a cash based economy to an electronic payments based economy.

iv. Complete the street address and post code system

He added that his administration will depart from "the tax, borrow and spend approach of the Mahama administration."

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Abu Mubarik Abu Mubarik Abu Mubarik is a writer at Pulse Ghana with special interests in Ghana politics, international relations and geopolitics.

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