Ghana's Finance Minister-designate, Dr. Cassiel Ato Forson, has pledged to abolish both the E-Levy and the betting tax in the government's first budget, pending parliamentary approval. He argues that these taxes hinder economic progress, citing the E-Levy's discouragement of digital transactions and obstruction of Ghana's transition to a cashless economy, and the betting tax's minimal revenue generation.
Dr. Forson reiterated his longstanding opposition to the E-Levy, stating, “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. The e-levy is neither a direct tax, an indirect tax, or an excise tax. 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 emphasized that his stance remains unchanged and that the abolition of both taxes is a commitment of the Mahama administration.
He further elaborated on his concerns regarding the E-Levy's classification and impact, stating, “I don’t know how to classify it as a tax practitioner. It doesn’t mean that I do not recognise that the levy brings in a certain amount of revenue, but the fact remains, e-levy retards the progress towards a cashless economy. We need to abolish it.”
Beyond the removal of these taxes, Dr. Forson highlighted the importance of improving tax compliance to boost government revenue. He believes Ghana possesses significant untapped potential for revenue mobilization and that increasing taxes isn't necessary.
He aims to raise the tax revenue-to-GDP ratio from 13.8% to 16-18% through enhanced compliance measures, working closely with the Ghana Revenue Authority (GRA) and the Ministry of Finance's tax policy unit. This ambitious goal demonstrates his commitment to fiscal responsibility and sustainable economic growth without resorting to increased taxation.
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