Govt’s Plan to Abolish E-Levy and Betting Tax Could Violate IMF Agreement – Gideon Boako
MP Raises Concerns Over Potential Fiscal Imbalance and IMF Compliance
- Dr. Gideon Boako has expressed concerns about the potential introduction of new taxes by the John
- Dr. Boako questioned whether these proposed changes align with the fiscal policies agreed upon with the IMF
- He added that any such move could compromise the government’s fiscal discipline as outlined in Ghana’s debt sustainability analysis
Dr. Gideon Boako, the Member of Parliament for Tano North, has expressed concerns about the potential introduction of new taxes by the John Dramani Mahama-led government in light of the proposed removal of the E-Levy and betting tax.
Dr. Boako’s comments come after Finance Minister-Designate Dr. Cassiel Ato Forson suggested that the Mahama administration plans to abolish these taxes in its first budget, compensating for the lost revenue through expenditure cuts.
Dr. Boako questioned whether these proposed changes align with the fiscal policies agreed upon with the International Monetary Fund (IMF).
He cautioned that such measures could disrupt Ghana’s financial commitments and warned against the introduction of new taxes to fill the resulting revenue gap.
“We don’t want a situation where you give with your left hand and take with your right hand. If they are cutting taxes, they need to be explicit about it. If they scrap the E-Levy and betting tax, they should not introduce new taxes to make up for the shortfall,” Dr. Boako said. “If they want to remove these taxes, the only option to match the debt service-to-revenue ratio in the IMF programme would be to introduce new taxes through the back door. Otherwise, there is no other room.”
He added that any such move could compromise the government’s fiscal discipline as outlined in Ghana’s debt sustainability analysis under the IMF’s framework.
