Member of Parliament for Tano North, Dr. Gideon Boako, has cautioned the Mahama-led government against covertly introducing new taxes under the pretense of scrapping the electronic levy (e-levy) and betting taxes.His remarks follow statements made by Finance Minister-designate Dr. Cassiel Ato Forson during his parliamentary vetting on Monday, January 13. Dr.

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Forson announced plans to eliminate both the e-levy and betting taxes in the government's first budget presentation.Reacting to this, Dr. Boako warned that such a move could create substantial revenue gaps that the government would struggle to fill.

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He expressed concerns that eliminating these taxes without a clear replacement strategy would be incompatible with Ghana’s commitments to the International Monetary Fund (IMF), which requires strong revenue generation to meet debt servicing obligations.“I think by and large, he [Ato Forson] has done his part, but unfortunately, it wasn’t enough,” Dr. Boako noted.

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“For instance, he was asked how he plans to make up for the revenue shortfalls from scrapping the taxes, and he said he would cut expenditure. However, cutting expenditure does not address the problem because the IMF focuses on debt service to revenue ratio, not debt service to expenditure ratio.”Dr.

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Boako argued that while reducing government spending could offer temporary fiscal relief, it would not sufficiently resolve Ghana's need for stable revenue streams to manage debt obligations effectively.He further expressed concerns that the IMF's revenue demands might eventually pressure the government to introduce alternative taxes, undermining the initial promise to eliminate the e-levy and betting taxes.

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“We don’t want a situation where you give with the right hand and take with the left hand,” he added, urging the government to prioritize transparency and sustainable revenue strategies rather than cosmetic policy shifts.Dr.

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Boako concluded by advising the government to adopt a more comprehensive and long-term approach to resolving the country’s fiscal challenges, emphasizing the importance of clear policies that do not mislead the public.

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