Finance Minister-designate Dr. Cassiel Ato Forson has reiterated his commitment to abolishing the Electronic Transfer Levy (E-Levy) and the betting tax in the government’s maiden budget, should he secure parliamentary approval.
Speaking passionately on the need for reform, Dr. Forson described both taxes as counterproductive to economic growth. He argued that the E-Levy discourages digital transactions, thereby hindering Ghana’s journey towards a cashless economy, while the betting tax has failed to generate significant revenue.
“My stance on the E-Levy has always been clear, and I will not deviate from it. I have consistently opposed it through articles, debates, and policy discussions. The E-Levy does not fit neatly into any tax classification—it is neither direct, indirect, nor excise tax. It obstructs progress towards a modern, cashless economy and must be abolished,” he stated emphatically.
Dr. Forson also emphasized the ineffectiveness of the betting tax, labelling it a failed policy. “As Finance Minister, I will ensure that both the E-Levy and the betting tax are scrapped in my first budget. These measures are not helping us achieve our economic objectives,” he added.
He reaffirmed his alignment with former President John Dramani Mahama’s promise to abolish the E-Levy within the first 120 days of an NDC administration. “We remain resolute in our commitment to this pledge,” he declared.
Focus on Revenue Compliance, Not New Taxes
In addition to scrapping these taxes, Dr. Forson advocated for a shift in focus toward improving tax compliance rather than introducing new levies. According to him, Ghana’s economy has untapped potential in tax revenue mobilisation, and this can be harnessed without burdening citizens with additional taxes.
“I have studied Ghana’s tax system extensively and believe there is no need to increase taxes to raise revenue. Our challenge lies in compliance, not capacity. We have the tools to mobilize revenue effectively if we focus on enforcing compliance,” he noted.
Dr. Forson outlined his vision to raise Ghana’s tax revenue-to-GDP ratio from the current 13.8% to 16% in the short term and eventually to 18% in the medium term. “With improved compliance and a collaborative effort with the Ghana Revenue Authority (GRA) and the Ministry of Finance, we can achieve these targets. This will enable us to match the performance of our peers across the continent,” he said.
Path to Economic Recovery
The Finance Minister-designate believes these initiatives, coupled with a strategic approach to revenue mobilisation, will lay the foundation for sustainable economic recovery. “Our goal is not just to raise revenue but to create a system that supports businesses, fosters innovation, and accelerates growth. Scrapping the E-Levy and betting tax is just the beginning of broader reforms aimed at revitalising our economy,” Dr. Forson concluded.
The pledge to abolish these contentious taxes reflects a broader agenda by the opposition National Democratic Congress (NDC) to ease the tax burden on Ghanaians while fostering a more business-friendly environment.
Story by: Mercy Addai Turkson
