Dr Cassiel Ato Forson, the Finance Minister-designate, has outlined a bold strategy to enhance government revenue without imposing additional taxes on Ghanaians.
His plan prioritises improving compliance and efficiency within the country’s tax collection systems, presenting a balanced approach to tackling fiscal challenges while fostering economic growth.
During his vetting by Parliament’s Appointments Committee, Dr Forson stressed the potential to significantly increase revenue by addressing gaps in compliance.
“We don’t necessarily need to increase taxes to rake in revenue,” he stated confidently. “We have the tools, and I will work closely with the Ghana Revenue Authority (GRA) to ensure we meet our revenue targets by enhancing compliance.”
Targeting Tax-to-GDP Growth
Ghana’s tax-to-GDP ratio currently stands at 13%, significantly lower than the regional average.
Dr Forson is optimistic that his proposed measures could raise this figure to 16%, aligning with Ghana’s development aspirations.
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By boosting compliance and plugging revenue leaks, he believes the government can mobilise sufficient funds to address national development needs without overburdening citizens.
Relief for Citizens and Businesses
Beyond improving compliance, Dr Forson reaffirmed the government’s commitment to alleviating the tax burden on Ghanaians.
He revealed plans to review and scrap certain taxes, particularly those deemed counterproductive or unfair.
This, he noted, would not only provide relief to citizens and businesses but also create a fairer tax environment that encourages economic activity and investment.
Balancing Growth and Fiscal Responsibility
Dr Forson underscored the importance of striking a balance between revenue generation and maintaining a conducive environment for economic growth.
“My approach will focus on fostering economic activity while ensuring we meet our revenue targets,” he explained, adding that the government must address fiscal challenges without compromising the well-being of its citizens.
A Forward-Looking Vision
If confirmed, Dr Forson’s leadership at the Finance Ministry is expected to bring innovative solutions to Ghana’s economic challenges.
His emphasis on compliance over tax hikes signals a shift towards efficiency and accountability in revenue mobilisation.
As Ghanaians await his confirmation, many are hopeful that his strategies will help stabilise the economy, reduce the tax burden, and support the nation’s development goals.
