Scrapping betting tax will not affect the economy – Dr Ato Forson

Finance Minister-designate, Dr Cassiel Ato Forson, has stated that scrapping the 10% betting tax will have no significant impact on the country’s economy. According to him, the tax generates barely 50 million cedis annually, describing it as a nuisance tax.

Responding to a question from Atiwa West MP Lauretta Korkor Asante during his vetting on Monday, 13th January, Dr Forson emphasised that while the government is committed to revenue mobilisation, increasing taxes is not always the solution.

I've studied the Ghanaian economy for some time, and I can say without hesitation that Ghana has immense potential for tax revenue mobilisation. You don't necessarily have to increase taxes to raise revenue. What we need to do is improve compliance.

He pledged:

I will work with the GRA and the Tax Policy Unit of the Ministry of Finance to ensure we enhance compliance to maximise revenue collection in the medium term. My vision, when approved, is to increase tax revenue from 13.8% of GDP to about 16–18%, so we can compare ourselves to our peers.

Dr Forson reaffirmed the government’s commitment to scrapping certain taxes, in line with President John Dramani Mahama’s campaign promise.

Some taxes are not generating the revenue they should. For example, the merchant tax brings in less than 50 million Ghana cedis annually. It’s a nuisance tax. Scrapping 50 million Ghana cedis will not significantly affect the economy, particularly if adjustments are made on the expenditure side.

The Appointments Committee of Parliament will also vet the Minister-designate for Energy, John Jinapor, and the Attorney-General-designate, Dr Dominic Ayine.