Dr. Ato Forson reiterates NDC’s pledge to scrap taxes

Dr. Cassiel Ato Baah Forson, Ghana’s Finance Minister-Designate, has assured Ghanaians that removing the controversial betting tax will have minimal economic repercussions.
Addressing the Appointments Committee of Parliament during his vetting on Monday, Dr. Forson argued that the tax, which generated less than GH¢50 million annually, was negligible and its removal would not destabilize the economy.
“Some taxes do not bring in substantial revenue, yet they create unnecessary burdens.
The betting tax is one such example, generating less than GH¢50 million annually. Its removal will not significantly impact the economy,” he stated.
Dr. Forson’s remarks come on the heels of President John Dramani Mahama’s campaign promise to abolish the tax. Critics have labeled the levy as unjust, arguing that it disproportionately affects individuals who depend on betting as a source of livelihood.
The Ghana Revenue Authority (GRA) had projected the tax to yield GH¢1.2 billion ($104 million) in 2023, but Dr. Forson downplayed its significance, emphasizing a more efficient approach to revenue generation through compliance rather than new taxes.

A vision for enhanced revenue mobilization
Dr. Forson highlighted Ghana’s untapped potential for tax revenue mobilization, expressing his confidence in raising the tax revenue-to-GDP ratio from the current 13.8% to 16% or higher.

“Ghana has immense potential in tax revenue mobilization. We do not necessarily need to increase taxes; instead, we should focus on improving compliance,” he said.
The minister-designate pledged to work closely with the GRA and the Ministry of Finance’s tax policy unit to enhance compliance mechanisms and boost revenue collection without burdening citizens with additional taxes.
“In the medium term, I aim to raise the tax revenue-to-GDP ratio to 16% or even 18%. This will bring Ghana closer to its peers in terms of revenue performance,” he added.

Focus on microeconomy development
Dr. Forson underscored the importance of developing Ghana’s microeconomy to stabilize the cedi and create employment opportunities.
“Ghana is not out of the woods yet. To grow our economy, we must focus on the microeconomy. Jobs, cedi stability, and economic growth are achieved not only through macroeconomic policies but also by addressing the structural challenges at the micro level,” he explained.
He highlighted the significant role of the informal sector, particularly small and medium-sized enterprises (SMEs), and advocated for incentives to encourage their active contribution to the economy, such as pension schemes for informal workers.

Debt management
Dr. Forson reaffirmed the government’s commitment to fiscal responsibility, including expenditure cuts to protect vulnerable populations.
He also emphasized plans to establish an independent credit office to tackle Ghana’s debt challenges.
“Addressing debt sustainably will be a priority. We aim to collaborate with partners like the African Development Bank, World Bank, and IMF to secure affordable financing for our development needs,” he stated.
Madam Abena Osei Asare, a former Minister of State at the Finance Ministry, commended Dr. Forson for his constructive role in Parliament and expressed optimism about his leadership.
She highlighted economic gains made under the previous administration, including a rise in economic growth from 2.9% in 2023 to 5.8% by the end of 2024.
Inflation also dropped from 28% in 2023 to 23.2% in December 2024, while private sector credit grew by 28.8%.
The banking sector witnessed significant growth, with total assets increasing from GH¢274 billion in 2023 to GH¢376 billion by October 2024.
Ghana’s reserves also improved, covering 3.5 months of imports.

Outlook
As Dr. Ato Forson awaits confirmation as Finance Minister, his pragmatic approach to revenue mobilization, fiscal discipline, and microeconomic development signals a renewed focus on sustainable growth.
His promises of reform and collaboration are expected to foster trust among stakeholders and set Ghana on a path toward economic resilience.