Finance Minister-designate Dr. Cassiel Ato Forson has vowed to abolish the betting tax in his first budget, describing it as an ineffective policy that has failed to achieve its intended purpose.
During his vetting before Parliament’s Appointments Committee yesterday, Dr. Forson recalled earlier remarks made by Honorable Kojo Oppong Nkrumah, the then-Minister for Information, who had justified the tax as a deterrent measure, aimed at reducing harmful practices among the youth.
Dr. Forson criticized this rationale, arguing that the tax had neither addressed the underlying issues nor deterred individuals from engaging in the activity it sought to curb.
“I stated at the time that introducing a tax to address this problem would not work. Research and elasticity studies suggest that such taxes are unlikely to achieve behavioral change in this context. If the intent was to solve the problem, banning the activity would have been a more effective option,” Dr. Forson said.
He asserted that his earlier critique of the policy has been validated, as the betting tax has failed to produce the desired outcomes, adding “The tax has not solved the problem as intended by the government. I stand by my position that it must be abolished,”
He also reaffirmed the National Democratic Congress’ (NDC) commitment to reintroducing road tolls as a key revenue-generation strategy for road maintenance, underscoring the NDC’s consistent support for road toll collection and reiterating plans to restore the policy.
Dr. Forson highlighted that while the New Patriotic Party (NPP) government abolished road tolls in 2021, it had indicated intentions to reinstate them before leaving office, however, these efforts, including a concession agreement submitted to Parliament, were left incomplete.
He stressed the global acceptance of road toll collection as a reliable mechanism for funding infrastructure and emphasized its importance in Ghana’s context. initiatives.
Meanwhile, Member of Parliament for Tano North, Dr. Gideon Boako has raised concerns about the practicality of proposed tax reforms outlined by Finance Minister-designate Dr. Cassiel Ato Forson during his vetting.
Dr. Boako referenced past actions by the New Patriotic Party (NPP) government, which in 2017 under President Akufo-Addo, successfully scrapped or reduced 17 taxes.
He argued that while scrapping or reducing taxes is achievable, the current context demands a more comprehensive strategy to address the potential revenue shortfalls that could follow.
“The first budget in 2017 scrapped or reduced about 17 different taxes. This time, we’re talking about just four taxes. It is possible to scrap the taxes, just as was done before, but what is not clear is how the government plans to compensate for the lost revenue,” Dr. Boako stated.
He further criticized Dr. Forson’s hints at possibly introducing alternative taxes to offset the removal of levies like the E-Levy and other burdened taxes stating “You cannot give with your left hand and take with the right hand. If you are scrapping the E-Levy or burdened tax, you should not introduce another tax through the back door.
Speaking on Joy News, Dr. Boako also highlighted the importance of aligning revenue generation with debt servicing obligations. He questioned whether the proposed measures would be sufficient to maintain Ghana’s revenue targets, avoid breaching International Monetary Fund (IMF) conditions, and prevent drastic expenditure cuts.
“Government expenditure is largely tied to key areas like interest on existing debt and statutory obligations. If revenue shortfalls arise, what expenditure lines will be cut? These are critical questions the government must address,” he added.
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Source: Comfort Sweety Hayford/ATLFMNEWS
