MP Dr. Gideon Boako Warns Against Hidden Tax Increases Amid Plans to Scrap Levies

Member of Parliament for Tano North, Dr. Gideon Boako, has raised concerns over the government’s intention to scrap several controversial taxes, including the E-levy, Betting Tax, and the COVID-19 levy.

While acknowledging the government’s move, Dr. Boako warned that abolishing these levies could lead to the introduction of new taxes “through the back door” to fulfill obligations under the International Monetary Fund (IMF) programme.

In an interview with Citi News following the vetting of Finance Minister-designate Dr. Cassiel Ato Forson on January 13, 2025, Dr. Boako pointed out that scrapping these taxes without a clear plan for revenue generation could lead to fiscal gaps. “If they indeed want to scrap e-levy, betting tax, the COVID-19 levy, 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 is to have another tax introduced through the back door to make up for the shortfall,” he stated.

Dr. Boako emphasized that Ghanaians should not face a situation where the government cuts taxes but then introduces new ones to fill the gap. He urged the authorities to be transparent about their intentions, warning against the practice of offering tax cuts while simultaneously introducing hidden taxes to cover fiscal shortfalls. “If they are cutting the taxes, they need to be clear about it, and not introduce any new taxes behind the scenes,” he said.

Meanwhile, Finance Minister-designate, Dr. Ato Forson, has assured the public that an NDC-led government would eliminate these so-called “nuisance taxes,” but would offset the loss in revenue through strategic cuts in government spending. Forson’s comments have fueled debate over the balance between reducing taxes and managing Ghana’s debt obligations under the IMF agreement.

As the discussions around tax reform continue, Dr. Boako’s remarks underscore the delicate balancing act the government faces in addressing revenue generation, public expectations, and international commitments.