Abolishing Betting Tax Will Not Affect Economy – Dr. Ato Forson

Dr. Cassiel Ato Forson, Ghana’s Finance Minister-designate, has declared the 10% tax on betting as economically insignificant, citing its limited contribution of approximately 50 million Ghana cedis annually. He described it as a “nuisance tax” and reiterated the government’s commitment to eliminating such levies as part of President John Dramani Mahama’s campaign promises.

Addressing Parliament’s Appointments Committee on Monday, January 13, Dr. Forson explained that while revenue mobilisation remains a priority, raising taxes is not always the most effective solution. Instead, he stressed the importance of improving tax compliance.

Enhancing Tax Revenue Without Raising Rates

“I’ve studied the Ghanaian economy extensively and can confidently say that Ghana has immense potential for tax revenue mobilisation,” Dr. Forson said in response to Atiwa West MP Lauretta Korkor Asante. “You don’t necessarily have to increase taxes to raise revenue. What we need to do is improve compliance.”

He pledged to collaborate with the Ghana Revenue Authority (GRA) and the Tax Policy Unit at the Ministry of Finance to enhance compliance, aiming to boost tax revenue as a share of GDP from the current 13.8% to 16–18%.

“My vision, when approved, is to ensure we achieve this target, aligning Ghana with our peers,” Dr. Forson stated.

Scrapping Inefficient Taxes

Dr. Forson highlighted the government’s intention to review and potentially abolish other low-yield taxes, including the merchant tax, which he said generates less than 50 million cedis annually. He reassured lawmakers that scrapping these taxes would not adversely affect the economy, provided adjustments are made to expenditure.

“Some taxes are not generating the revenue they should,” he noted. “Scrapping 50 million cedis will not significantly impact the economy, especially if we manage expenditure wisely.”

Broader Vetting Process Underway

Dr. Forson’s vetting is part of a broader parliamentary process to approve key ministerial appointments under the Mahama administration. The Appointments Committee is also set to vet John Jinapor, the Minister-designate for Energy, and Dr. Dominic Ayine, the Attorney-General-designate.

The government’s approach to tax reform and revenue mobilisation will be a crucial focus of the Mahama administration as it seeks to balance fiscal responsibility with economic growth.

Source: GhanaFeed.Com