Member of Parliament for Tano North, Dr Gideon Boako, is cautioning the Mahama government against introducing alternative taxes in disguise following their promise to scrap the electronic levy (e-levy) and betting taxes, Speaking to the media on Monday, 13 January, following the vetting of Finance Minister nominee Dr Cassiel Ato Forson, Dr Boako emphasised the potential implications of such a policy shift.
During his vetting, Dr Ato Forson revealed that the Mahama administration plans to abolish the e-levy and betting taxes in its first budget.
However, Dr Boako criticised the approach, stating that it could result in significant revenue shortfalls that the government would struggle to address.
He 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. "I think by and large, he [Ato Forson] has done his part, but unfortunately, it wasn't enough," Dr Boako stated. "For instance, he was asked how he plans to make up for the revenue shortfalls from scrapping the taxes, and he said he would cut expenditure.
