Dr Mark Assibey-Yeboah, the former Member of Parliament(MP) for the New Juaben South Constituency, unveiled a significant initiative by the government aimed at transforming the country's tax system: the implementation of a flat rate tax.
He emphasized that the current inconsistencies in tax rates have led many business owners to evade their tax responsibilities, resulting in substantial revenue shortfalls for the government. "Many businesses find the current tax system complicated and inconsistent, which leads to tax evasion," Assibey-Yeboah explained. "By introducing a flat rate tax, we can simplify the process and create a more transparent system that encourages compliance." The MP outlined the myriad advantages this new initiative could bring to both the government and the business community.
He pointed out that a flat tax would create a fairer tax environment, making it easier for individuals and businesses to understand their obligations. "This will not only boost government revenues but also instill a sense of fairness in the tax system," he added.
Assibey-Yeboah highlighted the current tax-to-GDP ratio, which stands at a relatively low 12%. "This is not just a number; it reflects the need for reform.