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Dr. Cassiel Ato Forson, the Finance Minister-Designate, has vowed to abolish the E-Levy and betting tax in the government’s first budget if his appointment is confirmed. He described the taxes as counterproductive to economic growth, with the E-Levy hindering digital transactions and the betting tax contributing minimally to national revenue.
“My position on the E-Levy is well known, and I do not intend to run from it. I have written articles against it, championed opposition to it, and still stand by that position. The E-Levy retards progress towards a cashless economy, and we need to abolish it,” Dr. Forson asserted during his vetting by Parliament’s Appointments Committee on January 13, 2025.
On the betting tax, he stated unequivocally, “The betting tax must be abolished. As Finance Minister, I will abolish it in my first budget because it has failed.”
Dr. Forson also reiterated President John Dramani Mahama’s 120-day agenda, which prioritizes scrapping the E-Levy as part of efforts to ease the tax burden on Ghanaians.
Addressing concerns about potential revenue losses from abolishing these taxes, Dr. Forson emphasized the importance of improving tax compliance rather than introducing new taxes.
“I have studied Ghana’s economy, and the potential for revenue mobilisation is significant. We don’t need to increase taxes to generate revenue. Instead, we must enhance compliance,” he explained.
He pledged to collaborate with the Ghana Revenue Authority (GRA) and the Ministry of Finance’s tax policy unit to raise the tax revenue-to-GDP ratio from 13.8% to 16%-18% in the medium term.
“With better compliance, we can compare ourselves to our peers without necessarily increasing taxes. The potential is there; we just need to harness it,” he added.
