Abolishing E-levy, betting tax violates IMF programme – Boako warns
Dr. Gideon Boako, the Tano North Member of Parliament, has expressed worries that the government of John Dramani Mahama may impose additional taxes in reaction to the elimination of the e-levy and betting tax.
His comment follows remarks made by Finance Minister-Designate Dr. Cassiel Ato Forson, who proposed that the Mahama administration eliminate these taxes in its first budget and make up the difference in revenue by cutting spending.
In an interview with Citi News, Dr. Boako expressed concerns regarding the planned measures’ compatibility with the budgetary policies that were agreed upon with the International Monetary Fund (IMF).
The nation’s financial obligations could be disrupted by such changes, he warned, and increased levies might not be the best way to addressing the revenue gap.
“We don’t want a situation whereby you give with your left hand and you take with your right hand. 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.
“If they indeed want to scrap e-levy, betting tax, the COVID-19, the 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. Other than that they do not have any other room.” Dr. Boako is reported to have said in a report by citinewsroom.com.
