Home Headlines Gideon Boako Warns Against IMF Violations Amid Proposed Tax Cuts Under Mahama...

Gideon Boako Warns Against IMF Violations Amid Proposed Tax Cuts Under Mahama Administration

0
IMF
IMF

Former government official Dr. Gideon Boako has raised concerns over the proposed abolition of the e-levy and betting tax by the incoming Mahama-led government, warning that such cuts could conflict with the terms of the International Monetary Fund (IMF) program and potentially lead to the introduction of new taxes.

Dr. Boako, a key figure in the previous government and Member of Parliament for Tano North, cautioned that while the tax cuts might be popular with the public, they could create a fiscal shortfall that the government would struggle to address without introducing new taxes. “We don’t want a situation whereby you give with your left hand and you take with your right hand,” he said in an interview with Citi News. “They have to be explicit. If they are cutting the taxes, they cut the taxes, they don’t introduce any new taxes, you cannot cancel or scrap e-levy, scrap betting tax, and go behind and create another tax to fill the gap.”

His comments come in the wake of Finance Minister-Designate Dr. Cassiel Ato Forson’s recent statement during his vetting in Parliament, where he signaled the intention to abolish the controversial e-levy and betting tax—a move that was broadly welcomed by many Ghanaians.

However, Dr. Boako expressed concerns that reducing these taxes could harm government revenue, complicating Ghana’s ability to meet its financial obligations under the IMF agreement. He highlighted that the IMF’s debt sustainability analysis requires strict adherence to revenue and debt targets, suggesting that the government may need to introduce new taxes through the back door to offset the potential revenue shortfall.

“If they indeed want to scrap e-levy, betting tax, the COVID-19 levy, and emission taxes, the only other thing they can do in order to match up with the debt service to revenue ratio as enshrined in the IMF programme and captured in the debt sustainability analysis is to have another tax introduced through the back door to make up for the shortfall,” Dr. Boako explained. “Other than that, they do not have any other room.”

He emphasized the importance of maintaining fiscal discipline and aligning with the IMF’s revenue targets, warning that failing to do so could undermine the very purpose of the proposed tax reductions. Dr. Boako’s remarks underscore the delicate balance that the incoming administration must strike between pursuing popular tax cuts and fulfilling the country’s financial commitments.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

error: Content is protected !!
WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version