Minister of Finance-designate, Dr. Cassiel Ato Forson
Revenue mobilization is essentially the generation of revenue for the government through domestic taxes and other non-tax resources.
The money collected will go towards the sustainable development in the country.
While many believe that the government needs to increase taxes to generate more revenue, others, including the Minister of Finance-designate, Dr. Cassiel Ato Forson, think otherwise.
He argued that there is no need to increase taxes given the country’s substantial potential in revenue mobilization.
Speaking during his vetting by the Appointments Committee of Parliament on Monday, January 13, 2025, Dr. Ato Forson noted that compliance with tax payments is what is needed.
The finance minister-designate promised to raise the tax revenue-to-GDP ratio from 13.8% to 16% if approved.
“I have studied Ghana’s economy for some time now and without mincing words, Ghana has potential when it comes to tax revenue mobilization. We don’t necessarily have to increase taxes before we can generate revenue. We have the means; what we need to do is improve compliance,” Dr. Cassiel Ato Forson said.
“In the medium term, it is my vision, if approved, to increase the tax revenue from 13.8% of GDP to 16%-18%. By doing this, we will be able to compare ourselves to our peers. I believe the potential is there, but it doesn’t necessarily mean we should increase taxes,” he added.
Dr. Ato Forson further announced that the government will scrap the E-Levy; however, road tolls will be reinstated.
SA/MA
