The flagbearer of the National Democratic Congress has launched a 2020 manifesto plan to exempt owners of small businesses from paying personal income tax and their businesses from paying corporate tax if returned to office in the December general election.
The NDC flagbearer, John Dramani Mahama, says the initiative, which will cost roughly GHC1.4 billion annually, will help reinject profit back into the SME sector.
“For medium-size Ghanaian businesses, we will reduce the corporate income tax rate from 25 to 15 percent in order to give them breathing room to be able to reinvest and expand their business,” Mahama said.
He was speaking at the launch of the NDC’s 2020 election manifesto at the University of Professional Studies in Accra (UPSA) last night (Monday 7 September).
Vision of shared prosperity
Mahama also announced that under the NDC manifesto, newly established medium-size businesses which employ 20 people or more will be exempted from paying corporate income tax for a year.
“Businesses that employ 20 or more – medium businesses – will get income tax exemption for two years to facilitate the growth of the business,” he said
“We will usher Ghana into an era of shared prosperity and all Ghanaians will reap the fruit of their labour. We need to turn our beloved country into an advance one and eradicate poverty,” the former president said.
The Big Push
The chairman of the NDC’s manifesto committee was Professor Kwaku Danso-Boafo, a former health minister and high commissioner to the UK, presented the document to guests at last night’s launch, which was streamed live across various platforms and through media outlets nationwide, including Asaase Radio.
He said the 2020 manifesto, which is divided into six thematic areas, is to be known as The People’s Manifesto.
The first section of the manifesto is titled “Fixing the Economy and Uniting Against Poverty”. The NDC believes the ideas outlined under this banner will address the challenges confronting the economy and contribute to poverty alleviation.
The second theme of the NDC manifesto is “promoting human development across all sectors of the economy” and the third “providing infrastructure for growth”. Mahama’s plan for stimulating the Ghanaian economy, the so-called Big Push to invest in infrastructure, comes under this third theme.
The fourth theme is “creating sustainable and decent jobs” and the fifth is “good governance, anti-corruption and accountable governance”.
The sixth theme focuses on deepening international relations and foreign affairs.