By Elsie Appiah-Osei
Accra, Jan 13, GNA – Dr Cassiel Ato Baah Forson, the Minister of Finance -designate, Monday emphasised the importance of improving compliance to enhance Ghana’s revenue generation.
Appearing before Parliament’s Appointment Committee for vetting, 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.
GNA