Presidential candidate of the New Patriotic Party (NPP), Nana Addo Dankwa Akufo-Addo, has kicked against policies of the current administration that cripple businesses and cause unemployment.

Nana Addo said he would reduce corporate tax rate, abolish VAT on financial services, remove duties on the importation of raw materials and manufacturing equipment, among others, to stimulate growth of the private sector if elected into power.

Nana Addo, who disclosed this recently to the media in Accra, said an enhanced employment tax credit scheme would also be instituted to provide incentives for companies employing fresh graduates under his administration.

Tax net expansion

He stated that the formalization of the Ghanaian economy would be pursued as an economic strategy to expand the tax net.

These, according to him, include National ID cards, which the National Democratic Congress (NDC) administration has failed to issue in seven years after depriving the National Identification Authority of funds.

He said the National ID cards would be issued in the first year.

In the area of financial inclusion, he said the goal is to have 70 percent of the bankable population having bank accounts, move from a cash-based economy to an electronic payments based economy and complete the street address and post code system.

He added that such processes would enhance the collection of more revenue even with lower tax rates.

“My approach will be different from the tax, borrow and spend approach of the Mahama administration. 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,” he indicated.

Teacher training allowance

“We will restore the teacher and nursing training allowances and we are still committed to our programme of free Senior High School (SHS) education for all students at that level.

“We will deepen financial sector reforms with the objective to establishing Ghana as a leading financial hub in Africa. Unfortunately, this government has taken us backwards in the area of financial sector reform.”

Huge Gov’t debt

He added that government has failed to fulfill its obligations to statutory funds such as the NHIS, DACF, GETFUND, Payments to the Disabled, etc. even though government had collected taxes that were meant for such funds.

“We would implement a policy of automaticity in the transfer of revenues collected for these funds so that arrears to these funds do not arise in the future,” Nana Addo affirmed.

Traders’ dilemma

Traders in the country are calling for the cancellation of the between 10 and 20 percent import duty, 17.5 percent import VAT/NHIL, 0.5 percent ECOWAS Levy, 0.5 percent EDIFF, 0.4 percent GCNet, 17.5 percent GCNet VAT/NHIL, GHS9 Ghana Shippers Authority, 1 percent Income Tax on Imports, GHS5 I.D.F, 2 percent Special Tax on Import, GHS5 CUBAG and 1 percent CCVR.