The Vice Chair of the New Patriotic Party (NPP) Manifesto Committee, Kojo Oppong Nkrumah, has announced that import duties will be cedi-based and applied at a flat rate starting in 2025.
Speaking on Monday, Oppong Nkrumah emphasized that the current system, which references duties in dollars, has created unnecessary fluctuations and unpredictability, hindering businesses across the country.
“Because it’s dollar-referenced, it fluctuates. That’s what we are moving away from—being able to give you a simple, basic cedi-based and flat rate,” he said, promising clarity and stability under the new system.
Addressing the issues businesses face, Oppong Nkrumah highlighted the negative impact of the current unpredictable taxation method, which often drives companies to evade taxes.
“One of the problems with taxation is when people can’t find some clarity and predictability, and therefore resort to a lot more tax evasion,” he remarked.
The new system, he explained, would eliminate this uncertainty by ensuring businesses know exactly what they owe beforehand.
For instance, he noted that under the new regime, businesses importing a container of spare parts would know in advance that the duty would be a fixed amount, such as GH¢50,000.
Comparing Ghana’s tax system with neighboring countries like Togo, Oppong Nkrumah stressed the importance of adopting more predictable measures to keep the nation competitive.
He also discussed plans to simplify the Value Added Tax (VAT) by collapsing it into a single, flat level that would be both input and output deductible.
Drawing parallels with Estonia’s flat-rate tax system, he argued that such reforms could broaden the tax base and reduce evasion, ensuring more Ghanaians contribute fairly to national development.
