Economic analyst and former government spokesperson, Dr. Gideon Boako, has raised red flags over the Mahama-led administration’s proposal to scrap the controversial e-levy and betting tax, warning that the move could breach the terms of Ghana’s agreement with the International Monetary Fund (IMF) and potentially lead to the introduction of new taxes.
Speaking in an interview, Dr. Boako expressed concerns about the potential impact of these tax cuts on government revenue and fiscal stability.
“You cannot cancel or scrap the e-levy and betting tax, then turn around and introduce another tax to fill the gap. That would be counterproductive”, he stated.
His comments come after Finance Minister-Designate, Dr. Cassiel Ato Forson, announced plans during his parliamentary vetting on Monday, January 13, to abolish the unpopular taxes. The proposal, while receiving praise from many, has raised questions about how the government intends to balance its books while adhering to the stringent conditions of the IMF program.
Dr. Boako, who is also a Member of Parliament for Tano North, highlighted that Ghana’s debt sustainability analysis under the IMF agreement leaves little room for maneuvering. “If these taxes are scrapped, the government must either find alternative revenue sources or introduce new taxes, which defeats the purpose of the promised relief,” he cautioned.
He underscored the importance of maintaining fiscal discipline to meet the debt service-to-revenue ratio outlined in the IMF deal. Failure to do so, he warned, could undermine investor confidence and disrupt Ghana’s economic recovery efforts.
As the Mahama-led administration prepares to implement its tax reforms, experts like Dr. Boako are urging transparency and careful consideration to ensure that fiscal policy decisions do not jeopardize the nation’s financial stability.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
