Finance Minister-designate, Dr. Mohammed Amin Adam, reassured the public that the government is committed to sparing Ghanaians from additional tax burdens.
Instead, they plan to enforce tax compliance rigorously, targeting those who have been avoiding their tax obligations.
Speaking at a press briefing after Ghana reached a staff-level agreement with the International Monetary Fund (IMF) on the Extended Credit Facility (ECF) arrangement, Dr. Adam highlighted the revenue gap created by the suspension of the 15 per cent Value Added Tax (VAT) on electricity consumption and the GH¢100 annual levy on petrol and diesel vehicle owners, amounting to GH¢1.8 billion.
He emphasized the need to boost revenue to support the US$3 billion loan-support program while ensuring that the tax burden is not unfairly shouldered by law-abiding taxpayers.
The government aims to implement revenue generation measures outlined in the 2023 and 2024 budgets more effectively.
Dr. Adam underscored the importance of reforms in tax administration to ensure fair assessments and prompt payment of taxes.
“Now, we’re determined to go out there and collect the taxes from those who have not been paying and those who have been evading taxes… to generate the desired revenue to fill the gap created as a result of the suspension of the taxes,” he said.
However, he noted that aggressive revenue collection alone is not sustainable, highlighting the importance of expenditure rationalization.
Regarding expenditure control measures, Dr. Adam mentioned ongoing efforts to clear arrears and enhance financial management through the Government Integrated Financial Management Information System (GIFMIS).
Acknowledging the challenges faced by Ghanaians due to reforms under the IMF program, Dr. Adam urged patience and perseverance, assuring that the benefits of fiscal consolidation would ultimately benefit the country.
“Some of the reforms that we’re implementing are biting, but I know that we’ll persevere and lead together, and ensure that the benefits of the fiscal consolidation will bring significant relief to the people of Ghana so that we can be counted once again as one of the fastest growing in the world,” he said.
Julie Essiam, Commissioner-General of the Ghana Revenue Authority (GRA), elaborated on alternative revenue mobilization strategies, focusing on compliance measures for resident Ghanaians’ foreign income.
Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), emphasized the government’s commitment to ensuring that state institutions avoid fiscal derailment during election years, pledging to maintain program implementation consistency.
The IMF is expected to approve Ghana’s GHS$360m third tranche in June, bringing the total disbursement to US$1.56 bn under the ECF arrangement, supporting Ghana’s post-COVID-19 economic growth and stability goals.