File photo
The Institute of Statistical, Social and Economic Research (ISSER) has recommended further research into implementing a flat rate tax for businesses, marking a potential shift in Ghana's approach to revenue generation.
In its recently published State of the Ghanaian Economy Report 2023 and Q3 2024 Review, ISSER suggests that a simplified tax structure could streamline compliance, ease administrative burdens on businesses, and potentially improve tax collection.
The recommendation aligns with a broader tax reform proposal from New Patriotic Party presidential candidate Dr Mahamudu Bawumia, who advocates a flat rate tax as a central component of his vision for a business-friendly tax system.
“There is also a need for research on a flat rate tax for businesses,” ISSER said in its report, underscoring the potential of a simplified structure to facilitate greater voluntary compliance, especially among small and medium-sized enterprises (SMEs).
The institute contends that Ghana’s complex tax framework may be impeding compliance and hindering revenue generation.
Dr Bawumia’s tax reform strategy goes further, proposing not only a flat rate tax but also a tax amnesty and the elimination of unpopular levies, including the e-levy and betting tax.
These changes, he argues, would foster a more streamlined tax regime, aimed at stimulating private sector growth and drawing in investment.
ISSER’s call for research highlights its commitment to evidence-based solutions in addressing Ghana’s revenue challenges.
A shift toward a flat rate tax, the institute suggests, could reduce compliance costs for businesses and improve collection rates, providing a steady and sustainable revenue stream to bolster national development.
Dr Bawumia’s proposal to cut down the number of tax types, which he claims have strained both businesses and citizens, reflects a growing push to reform Ghana's tax policies to better support economic growth.
Watch the latest edition of BizHeadlines below:
Copyright © 1994 - 2024 GhanaWeb. All rights reserved.
