Vice President and New Patriotic Party (NPP) presidential candidate Dr. Mahamudu Bawumia has announced that if the NPP is re-elected, fluctuating duties on imports will be replaced with a flat rate tax. This announcement was made during a media engagement on Sunday, August 25.
Dr. Bawumia explained that the flat rate tax system aims to simplify the taxation process for imported goods and services. He stated, “The flat rate tax system is a straightforward approach to calculating taxes on imports. Rather than dealing with varying tax rates that can fluctuate based on numerous factors, the flat rate offers a consistent, unchanging tax rate for specific classifications of imported goods. This means that importers will know exactly what to expect in terms of taxes, eliminating the uncertainty that has long plagued the importation process.”
He argued that this system would encourage tax compliance by reducing the incidences of under-declaration and deliberate misclassification of products to lower tax payments. According to Dr. Bawumia, the flat rate policy would also eliminate any ambiguity or opportunities for manipulation at the ports, ensuring fairness and creating a level playing field for all importers.
The NPP flagbearer also mentioned that the flat rate would ease the financial burden on businesses by providing clear and consistent rates. This predictability would help importers avoid the stress associated with unforeseen tax increases, which often lead to higher prices for imported goods and services, ultimately impacting consumers.
