Dr. Gideon Boako, Member of Parliament for Tano North Constituency in the Bono Region, has sounded a warning to the Mahama government against introducing alternative taxes in disguise. Apexnewsgh reports
This caution comes after the government promised to scrap the Electronic Levy (E-Levy) and betting taxes.
Speaking to the media on Monday, January 13, following the vetting of Finance Minister nominee Dr. Cassiel Ato Forson, Dr. Boako emphasized the potential implications of such a policy shift. He criticized the approach, stating that it could result in significant revenue shortfalls that the government would struggle to address.
Dr. Boako argued that such shortfalls would conflict with the requirements of the International Monetary Fund (IMF), which demands robust revenue generation to meet debt servicing obligations. He noted that the IMF focuses on debt service to revenue ratio, not debt service to expenditure ratio, making expenditure cuts an insufficient solution.
The Tano North MP warned that the IMF would ultimately insist on finding new sources of revenue, which could lead to the introduction of additional taxes. He urged policymakers to consider the long-term impact of their decisions and called for a more comprehensive approach to addressing Ghana’s fiscal challenges.
Dr. Boako cautioned against creating false hope by abolishing taxes only to replace them with alternative levies, urging the government to be transparent and pragmatic in managing the country’s revenue needs. As Ghana navigates its economic recovery, the government must carefully balance its fiscal policies to avoid exacerbating the country’s economic challenges.
