Accra: Dr Cassiel Ato Baah Forson, the Minister of Finance-designate, emphasized the importance of enhancing compliance to boost Ghana's revenue generation during his appearance before Parliament's Appointment Committee for vetting. He highlighted that Ghana possesses significant potential in revenue mobilisation, making tax increases unnecessary.
According to Ghana News Agency, Dr Forson expressed confidence in Ghana's ability to improve its tax revenue without raising taxes. He stated, "Mr Chairman, I have studied Ghana's economy for some time now and without mincing words, Ghana has the potential when it comes to tax revenue mobilisation. We don't necessarily have to increase taxes before you rake in revenue. We have the handles, what we need to do is to improve compliance."
Dr Forson committed to raising the tax revenue-to-GDP ratio from the current 13.8 per cent to 16 per cent if he is approved for the position. He detailed his plan to collaborate with the Ghana Revenue Authority (GRA) and the tax policy unit of the Ministry of Finance to enhance compliance and revenue collection.
He further elaborated, "In the medium term, it is my vision, when approved, to increase the tax revenue from 13.8 per cent of Gross Domestic Product to 16 or 18 per cent. By this, we will be able to compare ourselves to our peers. I believe the potentials are out there, but it doesn't necessarily mean we should increase taxes."
Moreover, the finance minister-designate reassured the public of the Mahama-led Government's dedication to abolishing certain taxes. This commitment aligns with his previous stance against tax waivers and loans that could impose a burden on the public finances.
