Finance Minister-designate, Dr. Cassiel Ato Forson, has committed to eliminating both the E-Levy and the betting tax in the government’s initial budget, contingent upon his approval.
He contended that these taxes impede economic advancement. In particular, he noted that the E-Levy discourages digital transactions and hinders the nation’s transition to a cashless economy, while the betting tax yields negligible revenue.
“My stance on the E-Levy is well established, and I do not intend to shy away from it. I have authored articles opposing the E-Levy, advocated against it, and I continue to uphold that position. The E-Levy does not fit the definitions of a direct tax, an indirect tax, or an excise tax. I firmly believe that the betting tax should be abolished, and as Finance Minister, I will eliminate it in my first budget due to its ineffectiveness.”
Dr. Forson emphasized that his views on these controversial taxes remain steadfast.
“I find it challenging to categorize it as a tax practitioner. While I acknowledge that the levy generates some revenue, it is undeniable that the E-Levy obstructs progress toward a cashless economy. We must abolish it,” he asserted.
“I have stated that if given the opportunity, I will abolish the E-Levy. I want to reiterate that, if approved, I will announce its abolition as part of our first budget. This aligns with the commitment made by H.E. John Dramani Mahama, who stated that as part of his 120-day agenda, we will eliminate the E-Levy, and we stand by that promise.”
No new taxes
Dr. Cassiel Ato Forson also highlighted the significance of compliance in boosting Ghana’s revenue. He believes that there is no necessity to raise taxes, given the country’s considerable potential for revenue generation.
“I have analyzed Ghana’s economy for some time, and without hesitation, I can say that Ghana possesses significant potential for tax revenue mobilization. We do not necessarily need to increase taxes to enhance revenue. We have the mechanisms in place; what we need to do is improve compliance.”
He committed to increasing the tax revenue-to-GDP ratio from 13.8% to 16% upon receiving approval.
“I will collaborate with the Ghana Revenue Authority and the tax policy unit of the Ministry of Finance to enhance compliance and maximize revenue generation.”
“In the medium term, my objective, pending approval, is to elevate the tax revenue from 13.8% of GDP to a range of 16% to 18%. This will enable us to benchmark ourselves against our peers. I am confident that the potential exists, but this does not imply that we must raise taxes.”