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Dr. Cassiel Ato Forson, the nominee for Finance Minister under President John Mahama, has expressed confidence in Ghana’s ability to significantly increase its revenue without the need for tax hikes.
Instead, he believes the key to unlocking greater revenue lies in improving tax compliance across the country.
In his remarks during his vetting by the Appointments Committee of Parliament on January 13, 2025, Dr. Forson explained, “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. We have the handles; what we need to do is to improve compliance.”
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Dr. Forson emphasised that there is considerable untapped potential within the country’s tax system, and he plans to focus on improving enforcement, reducing tax evasion, and making the process more efficient. By improving compliance, he believes that Ghana will be able to increase its tax revenue without burdening citizens with higher taxes.
The finance minister-designate further outlined a specific goal to raise the country’s tax revenue-to-GDP ratio. He aims to increase this ratio from the current 13.8% to between 16% and 18%, making it more in line with that of Ghana’s peers.
“I will work with the Ghana Revenue Authority (GRA), the tax policy unit of the Ministry of Finance, to ensure that we increase compliance and ensure that we raise the revenue as much as we can,” he added.
Dr. Forson’s approach focuses on enhancing the efficiency and effectiveness of the tax system, rather than imposing new taxes, and he assured the committee that under the Mahama administration, certain taxes would be scrapped to ease the burden on businesses and individuals.
He emphasised the importance of streamlining the tax collection process, ensuring that everyone pays their fair share, and addressing areas of revenue leakage. By doing so, he believes Ghana will be able to increase its revenue generation capacity and strengthen its fiscal position.
