Franklin Cudjoe, Founding President of IMANI Africa, has endorsed Dr Mahamudu Bawumia’s flat tax proposal, asserting that it could have a significant impact if implemented effectively.
Bawumia unveiled his flat tax idea during the NPP’s manifesto launch in Takoradi on August 18. The manifesto outlines a range of business-friendly policies designed to support and stimulate economic growth.
His plan includes several measures to enhance the business environment, particularly for small and medium-sized enterprises (SMEs).
Among the initiatives announced are investment tax credits for start-ups in key sectors, a flat rate for all importers to stabilize prices, and the harmonization of port charges to align with regional competitors.
Additionally, Bawumia proposed leveraging government purchasing power to support local businesses through a “Buy Ghana First” policy and restructuring electricity tariffs so that commercial rates are not higher than residential rates.
The flat tax proposal is part of a broader strategy to foster economic growth and job creation.
Bawumia also committed to establishing an SME Bank to cater to the financing needs of small businesses, reforming the small-scale mining sector, and completing the digitalization of land titling and registration.
He further proposed creating Special Economic Zones at key border towns to boost economic activity and reduce smuggling.
Cudjoe acknowledged Bawumia’s proposal as potentially impactful, provided it was well executed.
However, he also criticized other aspects of Bawumia’s address, noting that the current unemployment rate is significantly higher than in 2016 and pointing out that issues such as power outages, supposedly resolved by the end of 2016, have persisted.
Despite these criticisms, Cudjoe supported Bawumia’s pledge to limit his cabinet to 50 ministers, calling it a positive step towards more efficient governance.
