The Minister of Finance-designate, Dr. Cassiel Ato Forson, has promised to cancel both the E-Levy and the betting tax in the government’s first budget when he is approved.
According to him the E-levy and the betting tax hinder economic progress. He said the E-Levy for instance, discourages digital transactions and obstructs the country’s move towards a cashless economy, while the betting tax generates minimal revenue.
“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, 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 made it clear that his position on the contentious taxes remains unchanged.
“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,” he stated.
“I have said that given the opportunity, I will abolish the e-levy. I want to restate that position that if approved, as part of the first budget, I will announce that we will abolish the levy as part of our first budget. Recognizing the commitment H.E. John Dramani Mahama said that as part of his 120-day agenda, we will abolish the e-levy and we stand by that.”
No new taxes
Dr. Cassiel Ato Forson also underscored the importance of compliance in enhancing Ghana’s revenue. He believes there is no need to increase taxes given the country’s substantial potential in revenue mobilization.
“I have studied Ghana’s economy for some time now and without mincing words, Ghana has potential when it comes to tax revenue mobilization. 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.”
He pledged to raise the tax revenue-to-GDP ratio from 13.8% to 16% if approved.
“I will work with the 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.
“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 potentials are out there, but it doesn’t necessarily mean we should increase taxes.”
