NPP will scrap import duties on raw materials – Bawumia

The opposition New Patriotic Party (NPP) has outlined a number of policy decisions, including the scrapping of all import duties on raw materials, if Ghanaians vote in their favour on November 7.

Speaking at a fundraising event being organized by some chapters of the NPP USA branch in Houston, the Vice Presidential Candidate of the party, Dr. Mahamadu Bawumia, said the NPP intends to transform Ghana into what he calls one of the most business friendly economies in Africa. “We have focused a lot on revenue generation at the expense of production. The focus of government after government has been on taxation and very little on the incentives for production and if you get into that you are really creating an engine for unemployment and I am not surprised that the unemployment issue is not tackled because we have focused a lot on taxation.

“What we want to do in Ghana is to create the most business friendly and the most people friendly economy in Africa, that is the goal. Once you set that goal, you know what your competitors are up to,” the economist argued.

Bawumia explained that abolishing all import duties on raw materials will promote local production and generate more revenue. “You are trying to give the local production an incentive and this is the situation where you are trying to get local production of fufu powder and you have over taxed them and they have left . Our philosophy is going to be quite different.

We are going to have to give the incentives to promote local production so under the NPP by the grace of God in our first budget, our philosophy is that, allow the local production to take place, allow them to employ people. Get income taxes from there then when they make profit, you will get corporate taxes. But if you try to impose these huge import duties , they will not produce at all, we will lose the import duty, we will lose the income taxes, you will lose the corporate taxes …so we are going to abolish all import duties on raw materials into local products and it makes economic sense. We are not worried that we are going to lose revenue.