We have a credible plan to revive businesses – John Mahama

Former President and Presidential Candidate of the National Democratic Congress (NDC), John Dramani Mahama has assured the business community and the private sector in general that a future NDC government would create the enabling environment for their businesses to thrive.

He says the party has a workable plan in place to strengthen regulations, restore business confidence and increase the share of indigenous ownership of the economy.

The NDC flagbearer for the 2020 presidential elections gave the assurance Friday when he interacted with chiefs and people, as well as NDC supporters in the Asougyaman, Lower Manya Krobo, Yilo Krobo and Suhum constituencies on the second day of his four day campaign tour of the Eastern region.

The tour formed part of his campaign strategy to sell the party’s message on the economy and private sector revitalisaton and also to spread the message of the party’s alternative policies to the public ahead of the December 7 polls.

Indigenous ownership
At Atimpoku in the Asougyaman constituency where the former President began the day, he told a gathering at a mini rally that the plan also hinged on empowering the micro, small and medium enterprises (MSMEs) in the country, majority of which were indigenous, to be able to expand and create more jobs for the youth.

He said the party aimed at increasing the local share of businesses in the financial, construction, energy, agriculture and agribusiness, and the information communication technology (ICT) sectors, among others.

“We shall strengthen the regulatory framework, restore and work actively to increase the indigenous Ghanaian stake in the financial sector, especially in the banking, microfinance and savings and loans enterprises. This will also restore lost jobs”, he said.

Jobs agenda
He reiterated the party’s plan to strengthen the private sector to increase the stake of Ghanaian ownership in the economy while strengthening the local businesses to aid the government to create a minimum of 250,000 jobs in a year and about four million by the end of his four-year term.

He said his next government would also prioritise indigenous ownership in the financial sector to help equip them to be able to support MSEMEs to grow.

“Given that it is indigenous Ghanaian banks, and not the traditional foreign banks, that typically lend to our SMEs to stimulate our economy, this will be a major priority for us.

“We will introduce a tiered banking sector that allows indigenous Ghanaian businesses to invest in the financial sector and offer credit products targeted at different segments of the market”, the NDC Presidential Candidate said.

Tax exemptions
In Somanya and Suhum where he addressed different rallies, Mr Mahama said the party’s manifesto also contained incentives meant to cushion businesses against the shocks from the COVID-19 pandemic.

He said from 2021, an NDC government would exempt SMEs “entirely from corporate and personal income tax as promised in the Peoples’ Manifesto.”

He said the policy was aimed at granting a tax holiday to such businesses to enable them to plough back their revenue to retool and expand.

“We will also reduce corporate income tax from 25 per cent to 15 per cent for medium sized companies. Newly established medium-sized companies that employ up to 20 staff will be exempted entirely from paying corporate income tax for one year and same will be enjoyed for two years if you employ more than 20 Ghanaians”, he said.

Vehicle imports
Addressing a gathering of concerned commercial drivers in Suhum, he said although the party’s focus was in encouraging businesses to produce locally, it was aware that businesses needed imports to make their operations complete.

As a result, he said the next NDC government would introduce a tax exemption regime for commercial vehicles and other equipment imported into the country for commercial, industrial and agricultural purposes.
He said such imports would not attract import duty.

He also explained that the party intended to review the Customs (Amendment) Act, 2020 (Act 1014) to help save the local automobile industry in Suame Magazine in the Ashanti Region and Kokompe and Abossey Okai in the Greater Accra Region from collapse.

He said the party planned to scrap the portion of the law that banned the importation of salvaged vehicles into the country.
“Vehicle assembling companies will operate as a complement to local industry but not to cancel out the daily bread of Ghanaians”, he said.