Dr. Gideon Boako, Member of Parliament for Tano North, has raised concerns regarding the Mahama-led government’s proposed removal of the E-Levy and betting tax, warning that it could violate Ghana’s agreement with the International Monetary Fund (IMF).
Dr. Boako’s remarks follow statements made by Finance Minister-Designate, Dr. Cassiel Ato Forson, who suggested that the Mahama administration plans to abolish these taxes in its first budget. The government intends to offset the revenue loss from these tax cuts by implementing spending reductions.
Dr. Boako expressed doubts about the alignment of these proposed changes with the fiscal policies outlined in Ghana’s IMF programme. He cautioned that the government may resort to introducing new taxes to bridge the revenue gap, which could compromise the country’s financial commitments.
“We don’t want a situation where the government reduces taxes on one hand and introduces new ones on the other. If they are removing taxes, they need to be clear. If they scrap the E-Levy and betting tax, they shouldn’t create another tax to fill the gap,” Dr. Boako said.
He further noted that if the government proceeds with the tax cuts, it may have no choice but to introduce new taxes through indirect means to meet the IMF’s debt service-to-revenue ratio requirements. He stressed that without such a move, the government would have limited options for addressing the fiscal shortfall.
