Finance Minister-designate, Dr. Cassiel Ato Forson, has promised to scrap the controversial E-Levy and betting taxing the government’s first budget if he receives parliamentary approval. He argued that both taxes stifle economic progress and are counterproductive to Ghana’s development goals.
Dr. Forson criticized the E-Levy for discouraging digital transactions and hindering the country’s transition to a cashless economy. He also described the betting tax as an ineffective revenue stream.
“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 it, and I still stand by it. The E-Levy is neither a direct tax, an indirect tax, nor 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,” Dr. Forson declared.
He reiterated his commitment to the move, stating, “I don’t know how to classify it as a tax practitioner. It doesn’t mean that I do not recognize 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.”
Dr. Forson emphasized that this position aligns with former President John Dramani Mahama’s pledge to scrap the E-Levy within 120 days of taking office.
“I have said that given the opportunity, I will abolish the E-Levy. I want to restate that position: if approved, as part of the first budget, I will announce that we will abolish the levy. Recognizing the commitment H.E. John Dramani Mahama made, we will stand by that,” he affirmed.
No New Taxes, Focus on Compliance
Dr. Forson also ruled out introducing new taxes, stressing that the key to increasing revenue lies in improving 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 to rake in revenue. We have the handles; what we need to do is to improve compliance,” he explained.
He pledged to work closely with the Ghana Revenue Authority (GRA) and the Ministry of Finance’s tax policy unit to increase the tax revenue-to-GDP ratio from 13.8% to 16% in the medium term.
“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. I believe the potential is out there, but it doesn’t necessarily mean we should increase taxes,” he concluded.
