Formalizing indigenous Ghanaian businesses key on my agenda - Bawumia
The Vice President and flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has said that one of his key policies to boost the indigenous business community is to formalize them and have them recognized by the government.
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Speaking at a consultative meeting with members of the Council of Indigenous Business Association of Ghana (CIBA) in Accra on Monday, March 25, 2024, Dr. Bawumia said many indigenous Ghanaian businesses, which constitute the majority of the business community, are not formalized, and this does not bode well for policy planning and their growth.
"Many indigenous businesses are not formalized, and they have been sadly excluded. This exclusion does not bode well for the formulation of policies and planning, as well as the growth of these businesses in the informal sector," Dr. Bawumia said.
"It is important for indigenous businesses that have not yet been registered to register and formally be part of the Ghanaian business community," he urged them.
Dr. Bawumia added that he will engage with the leadership of CIBA for their members to be formalized and their businesses registered by the Registrar General.
"You constitute a large part of the business community, and you play a big role in job creation and our economy, but you have been excluded because many of your businesses are not registered. There is so much to gain from being formalized, and I am committed to seeing your businesses formalized and included."
"As we seek to get your businesses formalized, it is also important to further simplify the business registration process to encourage more people to register," Dr. Bawumia added.
In this regard, Dr. Bawumia told members of CIBA that having studied the business registration process of Estonia, which takes about 30 minutes, he is eager to replicate that in Ghana to encourage more people to formalize their businesses.
The Vice President took a number of questions and suggestions from members of CIBA and also explained to them in detail his proposed tax reforms.
He said the tax reforms his government intends to roll out in 2025 include a tax amnesty for businesses and individuals, a flat rate tax for businesses, as well as the cancellation of some taxes, including e-levy.
The Vice President explained further that his tax reforms are aimed at boosting businesses and ensuring transparency and understanding in the tax system, which he said is cumbersome for many now.
The membership of CIBA includes the Ghana National Association of Garages, National Drinking Bar-operators Association, Ghana Bar Operators Association, National Association of Beauticians and Hairdressers, National Refrigerators and Air Condition Workshop Owners Association, Federation of Ghana Goldsmith and Jewelers Association, Ghana Traditional Caterers Association, Ghana Electronics Serving Technicians Association, Ghana Association of Barbers and Barbering Salon Owners, Ghana National Tailors and Dressmakers Association, and National Cooperative Butchers Association.
