Dr Cassiel Ato Baah Forson, the Minister of Finance -designate, has emphasised the importance
Appointment Committee for vetting on Monday, he noted that Ghana had substantial potential in revenue mobilisation, making tax increases unnecessary.
“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,” he said.
Dr Forson pledged to raise the tax revenue-to-GDP ratio from 13.8 per cent to 16 per cent if approved.
He outlined his plan to work with the Ghana Revenue Authority (GRA) and the tax policy unit of the Ministry of Finance to increase compliance and revenue.
“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,” he said.
“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.”
The finance minister-designate assured of the Mahama-led Government’s commitment to scrapping certain taxes
This stance is consistent with his previous position, where he opposed tax waivers and loans that would burden the public purse.
On the Domestic Debt Exchange Programme (DDEP) he pledged to tackle the negative impact on Ghana’s economy.
Speaking during his vetting at the Appointments Committee of Parliament on Monday, Dr Forson gave the assurance that his ministry would take the necessary measures to remedy the alleged challenges created by the programme.
The DDEP, introduced by the Nana Addo Dankwa Akufo-Addo led-government, was to address Ghana’s mounting debt crisis.
The programme saw the restructuring of domestic bonds and debts, resulting in alleged significant losses for creditors and a complex repayment schedule that had raised concerns about Ghana’s fiscal sustainability
Dr Forson revealed that Ghana faced significant payments as part of the debt restructuring process, including: “GH¢12.6 billion in 2025, GH¢15 billion in 2026, and GH¢53 billion in 2027.”
“…Mr Chairman, we will do whatever it takes to clear the harms that have been created as a result of the domestic debt restructuring,’’ he said.
“As a result of the debt restructuring, in 2025, we will have to repay GH¢12.6 billion and in 2026, we will have to repay another GH¢15.7 billion and we will have to pay GH¢53 billion in 2027.”
Ghana had already paid “…$364 million and will be compelled to pay $1 billion every year starting from 2026,” he added.
Despite these challenges, Dr Forson expressed his commitment to resolving the issues and ensuring Ghana remained on a path toward finance recovery and economic stability.
His administration plans to take a robust approach to address the challenges created by the DDEP, including improving compliance and reducing wasteful spending within the government. —GNA
Politics7 months ago
