Scrapping the Betting Tax Will Not Affect the Economy – Ato Forson

During his vetting as Finance Minister-designate, Dr. Cassiel Ato Forson addressed several critical issues regarding Ghana’s economic policies, taxation, and fiscal management. The nominee passionately outlined his vision for enhancing Ghana’s revenue mobilization while tackling inflation, high interest rates, and the burden of inefficient taxes.

Scrapping the Betting Tax: A Bold Stance

One of the most striking statements made by Dr. Ato Forson was his assertion that scrapping the betting tax would not adversely affect Ghana’s economy. He described the tax, which generates less than 50 million Ghana cedis annually, as a “nuisance tax” with limited impact on the nation’s fiscal health.

READ ALSO; Dennis Appiah Larbi and Friends Donate to Kantamanto Traders After Market Fire

“Scrapping 50 million Ghana cedis will not significantly impact the economy, especially when adjustments can be made from the expenditure side,” Dr. Forson explained. He emphasized that the decision to eliminate such taxes aligns with the need to prioritize more effective revenue collection strategies and streamline public expenditure.

READ ALSO; Prez Mahama Calls For Immediate Investigation Into Deaths Of 2020 and 2024 General Elections

Revenue Mobilization Without Tax Hikes

Ghana currently collects approximately 13.8% of its GDP in tax revenue. Dr. Ato Forson expressed confidence in the country’s potential to boost this figure to 16-18% without imposing additional taxes. His approach focuses on improving tax compliance and efficiency rather than increasing the tax burden on citizens.

“We don’t necessarily have to increase taxes to rake in revenue. The key is to enhance compliance,” he noted, promising to collaborate with the Ghana Revenue Authority (GRA) and the Ministry of Finance’s tax policy unit to achieve this goal.

MUST READ; 5 Proven Ways to Make Money as an Entrepreneur in Today’s World

Addressing High-Interest Rates

Dr. Forson also tackled the issue of high interest rates, which he attributed to the government’s excessive borrowing. Ghana’s weekly rollover of over one billion cedis in Treasury bills, he said, puts undue pressure on interest rates and crowds out the private sector.

BUSINESS READ; The Future of Jobs: Key Insights and Emerging Trends

“The solution lies in cutting wasteful expenditure and reducing reliance on borrowing. By stabilizing inflation and exchange rates, we can create an environment where interest rates naturally decline, benefiting the private sector,” he stated.

Balancing Fiscal Discipline and Development Goals

Dr. Ato Forson acknowledged the challenges of meeting Ghana’s development needs while adhering to fiscal discipline. He pledged to ensure efficient public spending, reduce waste, and focus on sustainable economic policies to restore investor confidence and stimulate growth.

Kindly Subscribe to our YouTube channel; DTC Official Gh

The vetting session provided a glimpse into Dr. Ato Forson’s pragmatic approach to managing Ghana’s economy. By scrapping inefficient taxes like the betting tax, improving revenue mobilization through compliance, and reducing government borrowing, he aims to balance fiscal discipline with economic development.

---

WATCH FULL VIDEO