Dr. Gideon Boako, the Tano North Member of Parliament, has expressed concerns that the government of John Dramani Mahama may impose additional taxes in response to the elimination of the E-levy and betting tax.

His comment follows remarks made by finance minister-designate Dr. Cassiel Ato Forson, who proposed that the Mahama administration eliminate these taxes in its first budget and make up for the revenue shortfall by cutting spending.

In an interview with Citi News, Dr. Boako expressed concerns about the compatibility of the planned measures with the budgetary policies that were agreed upon with the International Monetary Fund (IMF).

He warned that such changes could disrupt the nation’s financial obligations, and that increasing levies might not be the best way to address the revenue gap.

“We don’t want a situation where you give with your left hand and take with your right hand. They have to be clear. If they are cutting taxes, they should cut taxes; they cannot cancel or scrap the e-levy, scrap the betting tax, and then create another tax to fill the gap.

“If they truly want to scrap the e-levy, betting tax, COVID-19 tax, and emission taxes, the only other option they have to meet the debt service-to-revenue ratio, as outlined in the IMF program and captured in the debt sustainability analysis, is to introduce another tax through the back door to make up for the shortfall. Other than that, they do not have any other room,” Dr. Boako is reported to have said, according to citinewsroom.com.

In August 2023, Ghana implemented a 10% withholding tax on gross winnings from all betting, gaming, lottery, and other games of chance. This tax is deducted by operators at the point of payout and remitted to the Ghana Revenue Authority (GRA).

The introduction of these taxes sparked public debate. Some citizens expressed concerns that the 10% tax on winnings disproportionately affects individuals who rely on betting for income, especially in the context of high unemployment rates.

KA



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