The Minister-Designate for Finance, Dr. Cassiel Ato Forson, has emphasized the critical role of improving tax compliance in boosting Ghana's revenue generation. He argued that there is no immediate need for tax increases, pointing to the country's significant potential in revenue mobilization.
“I have studied Ghana’s economy for a while now, and I can confidently say that we have considerable potential when it comes to tax revenue. We do not necessarily need to raise taxes to increase revenue. What is needed is to improve compliance,” Dr. Ato Forson stated during his vetting by the Appointments Committee of Parliament on January 13.
He committed to increasing the tax revenue-to-GDP ratio from 13.8% to between 16% and 18% if confirmed. Dr. Ato Forson outlined plans to collaborate with the Ghana Revenue Authority (GRA) and the tax policy unit of the Ministry of Finance to enhance compliance and maximize revenue collection.
“In the medium term, it is my goal to raise the tax revenue from 13.8% of GDP to 16% to 18%. By achieving this, we will be able to align ourselves with other nations in our peer group. The potential is there, but increasing taxes is not the only solution,” he added.
The Finance Minister-Designate also reassured that the Mahama administration remains committed to eliminating certain taxes to ease the burden on businesses and individuals.
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