Finance Minister-designate Dr. Cassiel Ato Forson has announced plans to abolish several contentious taxes while pursuing strategies to increase government revenue.
Speaking during his vetting before Parliament’s Appointments Committee on Monday, January 13, 2025, Dr. Forson outlined his vision for a more efficient tax system that prioritises compliance over introducing new levies.
The “nuisance taxes,” including the betting tax, e-levy, COVID-19 levy, and various import tariffs, have sparked public debate, with some advocating for their removal and others arguing for their retention due to the country’s low domestic revenue generation.
Dr. Forson announced that an NDC government would abolish the betting tax and the e-levy within the first 120 days in office.
“The betting tax, which generates just 50 million cedis annually, would be among the first to go. The noise with the betting tax does not comprehend the imposition of such a tax,” he said.
In response to a question from Atiwa West MP Lauretta Korkor Asante about addressing revenue shortfalls following tax cuts, Dr. Forson emphasized that enhancing tax compliance, rather than introducing new taxes, would be the key to boosting revenue.
“We don’t necessarily need to increase taxes to rake in revenue,” he said.
“We have the handles, and I will work with the GRA to ensure we rake in the needed revenue by increasing compliance,” he added.
Dr. Forson expressed confidence that this approach would improve Ghana’s tax-to-GDP ratio from the current 13% to 16%, aligning with the nation’s development goals. He also stressed the importance of reducing government expenditure and curbing borrowing to maintain fiscal sustainability.
“The burdensome taxes will be scrapped,” he stressed, “but we will maintain sustainable revenue generation to support national development.”
