Concerns Over New Taxes Amid Mahama’s Tax Policy Reforms
The Member of Parliament for Tano North, Dr Gideon Boako, has raised concerns about the potential for new taxes under the John Dramani Mahama-led government, following plans to abolish the e-levy and betting tax.
Dr Boako’s remarks come after statements by Finance Minister-Designate Dr Cassiel Ato Forson, who proposed eliminating these taxes in the government’s first budget, offsetting the revenue shortfall through strategic expenditure cuts.
Speaking to Citi News, Dr. Boako questioned whether these measures align with the fiscal framework set by the International Monetary Fund (IMF). He warned that removing key revenue streams might prompt the government to introduce new taxes to meet its financial obligations.
“We don’t want a situation where you give with your left hand and take with your right hand,” Dr. Boako cautioned. “If taxes like the e-levy and betting tax are removed, no hidden taxes should be introduced to fill the gap. Otherwise, it defeats the purpose of the reforms.”
He explained that meeting debt sustainability requirements under the IMF program might leave little room for alternative revenue measures without resorting to new taxation.
Implications for Economic Policy
Dr. Boako’s comments highlight the delicate balance the Mahama administration must maintain between fulfilling its tax reform promises and adhering to strict fiscal policies. The debate underscores the challenges of revenue generation while addressing the nation’s financial commitments.
This development puts a spotlight on the administration’s ability to implement fair and sustainable economic policies without imposing additional burdens on citizens.