Finance Minister-designate, Dr Cassiel Ato Forson, has made a bold statement regarding the 10% betting tax in Ghana. In his recent vetting session, Dr Forson emphasized that scrapping the tax would not have a significant impact on the country’s economy, as it only generates about 50 million cedis annually. He referred to the tax as a “nuisance tax” and stressed the importance of improving compliance rather than increasing taxes.
During the vetting, Dr Forson highlighted the potential for tax revenue mobilization in Ghana, stating that the key to increasing revenue is through enhanced compliance. He expressed his commitment to working with the Ghana Revenue Authority (GRA) and the Tax Policy Unit of the Ministry of Finance to maximize revenue collection in the medium term. Dr Forson set a vision to increase tax revenue from 13.8% of GDP to around 16-18%, in order to align Ghana with its peers.
Furthermore, Dr Forson reiterated the government’s commitment to scrapping certain taxes, in line with President John Dramani Mahama’s campaign promise. He pointed out that some taxes, such as the merchant tax, are not generating the expected revenue and described them as “nuisance taxes.” Dr Forson suggested that scrapping these taxes, even if they bring in less than 50 million cedis annually, would not significantly impact the economy, especially if adjustments are made on the expenditure side.
The Appointments Committee of Parliament is set to vet other ministerial nominees, including John Jinapor for Energy and Dr Dominic Ayine for Attorney-General. This process reflects the government’s efforts to ensure transparency and accountability in its decision-making processes.
In conclusion, Dr Cassiel Ato Forson’s stance on the betting tax and his vision for tax revenue mobilization in Ghana demonstrates a commitment to fiscal responsibility and economic growth. By focusing on compliance and identifying ineffective taxes, the government aims to optimize revenue collection and promote sustainable development in the country.
