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Dr Cassiel Ato Forson, Ghana’s Finance Minister-designate, has reiterated his unwavering commitment to abolishing the controversial Electronic Transaction Levy (E-Levy) within the first 120 days of President John Dramani Mahama’s administration.
Speaking during his vetting before the Appointments Committee of Parliament on Monday, January 13, 2025, Dr Forson outlined his opposition to the levy and its detrimental effects on the economy.
“My position on the E-Levy – well, I do not intend to run from it. I've written articles against the E-Levy. I championed opposition against the E-Levy. I still stand by them,” Dr Forson declared.
E-Levy classification and criticism
The Finance Minister-designate criticised the levy’s structure, stating that as a tax practitioner, he struggles to classify it.
“Mr Chairman, the E-Levy is neither a direct tax, indirect tax, or an excise tax. I don’t know how to classify the E-Levy as a tax practitioner,” he noted.
He acknowledged that the levy generates revenue but stressed its negative impact on financial technology and the country’s transition to a cash-light economy. “The fact remains that the E-Levy retards our progress towards a cash-light economy and fintech. We need to abolish the E-Levy,” he emphasised.
Commitment to abolishment
Dr Forson reaffirmed his earlier stance and assured Ghanaians that abolishing the levy remains a priority.
“Given the opportunity to abolish the E-Levy, I want to restate that position. If approved as part of the first budget, I’ll be privileged, and I will announce that we will abolish the E-Levy as part of our first budget. Recognising my earlier stance and the commitment that His Excellency the President, John Dramani Mahama, made, as part of our 120 days agenda, we will abolish the E-Levy. We stand by that, and I can assure you, the E-Levy will go within the 120 days calendar that we’ve announced,” he pledged.
Expenditure over revenue
In addition to his commitment to abolishing the levy, Dr Forson underscored the need to prioritise expenditure management over relentless revenue generation.
“It shouldn’t always be revenue, revenue, revenue. Why are we not paying attention to expenditure?” he questioned.
He proposed a careful fiscal consolidation strategy: “We will indeed implement a careful but strong expenditure-based, front-loaded fiscal consolidation agenda without hurting growth and the vulnerable. Our expenditure cuts will be careful and done in a way where the vulnerable will be protected.”
Dr Forson stressed that wasteful spending must be eliminated to ensure that expenditure drives inclusive growth. “If the expenditure is wasteful, it’s not properly targeted, and it’s not achieving the desired outcome, then you have to re-look at it,” he said.
As a self-identified social democrat, Dr Forson assured the Committee that his policies would prioritise the welfare of the vulnerable.
“Mr Chairman, I’m a social democrat. My party, the NDC, is a social democratic party. We stand by our ideals. We will not be the ones to hurt the vulnerable. We will protect the vulnerable in our society,” he affirmed.
Dr Forson highlighted his extensive experience and understanding of Ghana’s economic landscape, developed over two decades.
“I have monitored Ghana’s economy for close to 20 years. I understand its trends. Whatever policy we introduce, we will introduce it in such a way that it will drive inclusive growth and help all of us,” he concluded.
