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Mahama Gov’t’s Plan To Abolish E-Levy And Betting Tax Will Violate IMF Conditions

Dr. Boako, speaking to Citi News, cautioned that these proposed tax cuts could lead to revenue shortfalls, potentially jeopardizing commitments under the country’s fiscal agreements with the International Monetary Fund (IMF).

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The Member of Parliament for Tano North, Dr. Gideon Boako, has raised concerns about the potential introduction of new taxes under the John Dramani Mahama-led government. His remarks follow the administration’s pledge to abolish the controversial e-levy and betting tax if elected, a move intended to ease financial burdens on citizens.

Dr. Boako, speaking to Citi News, cautioned that these proposed tax cuts could lead to revenue shortfalls, potentially jeopardizing commitments under the country’s fiscal agreements with the International Monetary Fund (IMF).

“If they indeed want to scrap the e-levy, betting tax, COVID-19 tax, and emission taxes, the only other thing they can do to match the debt service-to-revenue ratio, as enshrined in the IMF programme and captured in the debt sustainability analysis, is to introduce another tax through the back door to make up for the shortfall,” Dr. Boako stated.

His comments come in response to assurances by Dr. Cassiel Ato Forson, the Finance Minister-Designate, who suggested that the Mahama administration would offset the impact of the tax removals by implementing expenditure cuts. However, Dr. Boako expressed skepticism about the feasibility of these measures and their alignment with the IMF’s stringent fiscal requirements.

“We don’t want a situation where you give with your left hand and take with your right hand,” he warned. “If they are cutting taxes, they must be explicit. They cannot scrap these taxes and then introduce others to fill the gap.”

The Mahama administration’s fiscal policy proposals have sparked debate, particularly over their potential implications for Ghana’s economic recovery efforts. Analysts are closely watching to see how these measures will align with the government’s broader financial strategy and its commitments to international partners.

The e-levy and betting tax have been contentious since their introduction, with critics arguing they place undue burdens on ordinary Ghanaians. However, proponents, including members of the current administration, have defended them as necessary for generating revenue to support public services and infrastructure.

As the debate continues, questions remain about how a potential Mahama government would balance tax cuts with fiscal sustainability, ensuring that key commitments under IMF programmes are upheld.

Source: GhanaFeed.Com

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