Ato Forson: We don’t need more taxes to raise revenue

Dr Cassiel Ato Forson, who has been nominated for the Finance portfolio as a Minister, has rejected claims that the government needs to adjust tax rates to generate revenue for the country’s rebuilding efforts.

While addressing questions before the Parliamentary Appointments Committee, Dr. Forson outlined his strategy for boosting revenue without increasing taxes. He emphasized the importance of improving tax compliance as a key measure.

"We don’t necessarily need to increase taxes to raise revenue. We have the tools at our disposal, and I will work closely with the Ghana Revenue Authority (GRA) to ensure we collect the necessary revenue by enhancing compliance," Dr Forson explained.

He expressed confidence that this approach would improve Ghana’s tax-to-GDP ratio, which currently stands at 13 per cent and raise it to 16 per cent, aligning with the country’s long-term development goals.

Additionally, Dr Forson reiterated the government’s commitment to reducing the tax burden on Ghanaians, promising to review and eliminate certain taxes where needed. He stated that this would provide relief to citizens and businesses while creating a fairer and more equitable tax system that supports economic growth.

On inflation, Dr Forson said, "Mr Chairman, it is our responsibility to reduce inflation to 8 per cent in the shortest possible time. Expenditure management is key, and once we achieve this, it will help the central bank and monetary authorities to preserve reserves and protect the cedi or intervene when necessary."

As Finance Minister-designate, Dr Forson emphasized the need to strike a balance between revenue mobilisation and fostering a favorable environment for economic activity. His proposed strategies aim to support national development while addressing fiscal challenges without burdening taxpayers.