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Dr. Cassiel Ato Forson, the finance minister-designate, has pledged to abolish the controversial e-levy and betting tax in the government’s first budget, should he be approved by Parliament. He argued that both taxes hinder economic progress and fail to provide the intended benefits.
Dr. Forson criticised the E-Levy, a tax on electronic transactions, for deterring digital payments and obstructing the country’s transition to a cashless economy.
“My position on the E-Levy is well known, and I do not intend to run from it. I have written articles against the E-Levy, I championed the position against the E-Levy, and I still stand by it,” he stated during his vetting on January 13.
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He described the E-Levy as unclassifiable within standard tax frameworks and insisted on its removal. “The fact remains that the E-Levy retards the progress towards a cashless economy. We need to abolish it. If approved, I will announce its abolition as part of our first budget,” he said.
Regarding the betting tax, Dr. Forson dismissed its economic value, noting it generates minimal revenue. “I insist that the betting tax must be abolished, and as Finance Minister, I will abolish it in my first budget because it has failed,” he declared.
The finance minister-designate emphasised that Ghana does not need to impose new taxes but should instead focus on improving tax compliance.
“I have studied Ghana’s economy for some time now, and without mincing words, Ghana has potential when it comes to tax revenue mobilisation. We don’t necessarily have to increase taxes before you rake in revenue. What we need to do is to improve compliance,” he explained.
Dr. Forson proposed to raise the tax revenue-to-GDP ratio from 13.8% to 16% in the medium term, aligning Ghana with its peers.
“In the medium term, it is my vision, when approved, to increase the tax revenue from 13.8% of GDP to 16%–18%. By this, we will be able to compare ourselves to our peers. The potential is out there, but it doesn’t necessarily mean we should increase taxes,” he stated.
Dr. Forson reiterated President John Dramani Mahama’s commitment to fulfilling campaign promises, including the removal of the E-Levy within the first 120 days of the new administration.
The finance minister-designate’s vision centres on fiscal discipline, enhanced compliance, and policies aimed at fostering economic growth without overburdening citizens with additional taxes.
