Ghana’s Finance Minister Designate, Dr. Cassiel Ato Forson has labelled the controversial betting tax as a “nuisance tax,” emphasizing that its removal would not significantly impact the country’s economy.
Dr. Forson, during his vetting by Parliament’s Appointments Committee on Monday, January 13, 2025, highlighted the minimal revenue generated from the tax, which amounts to less than GHC50 million annually. He argued that such a negligible contribution to national revenue makes the tax unnecessary and burdensome.
“Some of the taxes out there are not bringing in the revenues that they should. For example, the betting tax is bringing less than GHC50 million annually. It is a nuisance tax, and scrapping it would not hurt the economy in any significant way,” he remarked.
Dr. Forson assured the committee of his commitment to enhancing revenue mobilization through improved tax compliance. He pledged to collaborate with the Ghana Revenue Authority (GRA) to streamline the country’s revenue collection mechanisms.
“In the medium term, my vision is to increase tax revenue from 13.8% of GDP to 16-18%. This will position Ghana on par with its peers in the region. The potential for growth exists, and I intend to harness it effectively,” he stated.
Alignment with Campaign Promises
The decision to abolish the betting tax aligns with a key campaign promise made by President John Dramani Mahama during the 2024 general elections. Dr. Forson reiterated that the proposed tax repeal would not hinder the government’s fiscal targets if public expenditure is adjusted prudently.
He explained, “Scrapping the betting tax does not mean the economy will falter. It’s about making smart adjustments to government spending while exploring more effective revenue streams.”
Controversy Surrounding the Betting Tax
The betting tax, introduced under the previous New Patriotic Party (NPP) administration, sparked widespread public criticism, particularly among the youth. Many citizens viewed it as an additional financial burden during a time of economic hardship.
Critics have linked the tax to the NPP’s resounding defeat in the recent elections. The policy became a rallying point for opposition campaigns, with youth-led movements vigorously opposing its implementation. Analysts suggest that the backlash against the betting tax contributed significantly to the NPP’s loss of public favor.
Moving Forward
As Dr. Forson prepares to assume office. His position on the betting tax reflects a broader agenda to reform Ghana’s tax system by focusing on high-impact revenue measures and easing unnecessary burdens on citizens. His plans to raise tax-to-GDP ratios while maintaining equity and efficiency in taxation have been welcomed by many stakeholders.
With the new administration’s commitment to addressing such contentious issues, the removal of the betting tax is expected to be a step toward restoring public trust and fostering a more equitable fiscal policy.
Story by: Mercy Addai Turkson