The Finance Minister-Designate, Dr. Cassiel Ato Forson, has highlighted the significance of improving tax compliance to enhance Ghana’s revenue collection, asserting that there is no immediate need to raise taxes.
During his vetting by the Appointments Committee of Parliament on January 13, Dr. Forson emphasized Ghana’s untapped potential in revenue mobilization.
“Ghana has significant potential in tax revenue mobilization. We don’t need to increase taxes to generate more revenue; we simply need to enhance compliance,” he stated.
Dr. Ato Forson pledged to raise Ghana’s tax revenue-to-GDP ratio from the current 13.8% to a target range of 16%-18%, aligning the country with its peers. He assured the committee that he would work closely with the Ghana Revenue Authority (GRA) and the Ministry of Finance’s tax policy unit to achieve this goal.
“In the medium term, my vision is to increase the tax revenue-to-GDP ratio to 16%-18% without raising taxes. The potential exists, and we need to capitalize on it through improved compliance,” he explained.
Additionally, Dr. Forson reaffirmed the Mahama government’s commitment to scrapping certain taxes as part of its economic strategy.
