Ato Forson Vetting: 10 Highlights From The Scrutiny Of Mahama’s Finance Minister Pick
Parliament's appointment committee has vetted the Finance Minister-designate, Dr Cassiel Ato Forson. YEN.com.gh outlines 10 key takeaways from the vetting of a critical portfolio.
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Parliament has started vetting President John Mahama's nominees for ministerial positions.
Finance Minister-designate Dr Cassiel Ato Forson was the first to appear before Parliament's appointment committee.
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Forson is an economist, chartered accountant, and tax practitioner with extensive experience in public finance, macroeconomics, fiscal policy, and business management.
He is a five-term lawmaker and holds a PhD in Finance from the Kwame Nkrumah University of Science and Technology and Master of Science degrees in Taxation and Economics from the University of Oxford and the Kwame Nkrumah University of Science and Technology, respectively.
Forson will be at the forefront of the Mahama administration's efforts to improve an economy plunged into crisis by the Akufo-Addo administration.
10 highlights from Forson's vetting
Bridging revenue gap
With the Mahama administration set to scrap several taxes introduced by the Akufo-Addo administration, Forson was confronted with how the new government would raise revenue.
He wants to work towards increasing tax compliance and widening the tax net. “You don’t necessarily have to increase taxes before you rake in revenue,” he noted
In the medium, he wants to increase tax revenue from 13.8% of GDP to about 16 to 18%
As a side note, he also stressed the importance of cutting waste.
Tax exemptions
Forson believes that tax exemptions are not well-targeted and that they increase tax rates for companies that do not benefit from them.
He also noted the One District, One Factory tax exemptions were not transparent enough.
“I do not believe that certain individuals must be privileged enough to get tax exemptions while others doing the same are not given the opportunity to get tax exemptions.”
'Sika mpe dede'
When asked to describe the state of the economy, Forson held his cards to his chest and said it was not yet in the early days.
“As we speak, there is no outturn for 2024 because whatever you have is preliminary and cannot be said to be the outturn.”
Forson said he would need to conduct a more thorough examination of the economy before he could give a verdict on its state.
“I don’t want to speculate... I want to learn from the former president. Sika mpe dede [money doesn’t like speculation].”
Ghana is not out of the woods
Forson maintained that Ghana’s economy was still in dire straighs. Though the former administration argued that Ghana had made an economic turnaround,
"Ghana is not out of the woods… there is a lot more work for us to do as far as the Maco is concerned.”
This notwithstanding, he stressed that the economy could also be grown from the micro. He said we needed to get back to basics and not just tweak the macro but also deal with the micro issues. He cited addressing the likes of oil revenue, the cocoa industry challenges, etc.
The e-levy’s days are numbered
If approved, Forson has pledged to remove both the 1% Electronic Transfer Levy and the betting tax from the government’s first budget.
He argued that both taxes hinder economic progress. Specifically, he pointed out that the E-Levy discourages digital transactions and obstructs the country’s move towards a cashless economy, while the betting tax generates minimal revenue.
“My position on the E-levy is well known and I do not intend to run from it.”
Road tolls returning
The Akufo-Addo-led administration's decision to abolish road tolls in 2021 is set to be reversed. Forson confirmed the Mahama administration will stick to plans to reintroduce road tolls in line with the party’s 2024 manifesto.
“The NDC indicated from day one that the road toll will come back. We are not running away from it."
Addressing the debt exchange
Forson pledged to address the negative impact of the Domestic Debt Exchange Programme on the Ghanaian economy and its citizens.
“We will do whatever it takes to clear the harms that have been created as a result of the domestic debt restructuring. As a result of the debt restructuring, in 2025, we will have to repay GH¢12.6 billion and in 2016, we will have to repay another GH¢15.7 billion and we will have to pay GH¢53 billion in 2027."
Free SHS is here to stay
Forson reiterated the Mahama administration’s commitment to maintaining and enhancing the Free Senior High School (SHS) policy.
He fully supported President John Mahama’s pledge to preserve and strengthen the policy.
“My party’s position on Free SHS has been well articulated by His Excellency President. We do not intend to cancel the Free SHS. President Mahama has said the Free SHS has come to stay.
Passing the buck on the 24-hour economy
Forson noted that a special office handles the 24-hour economy. He assured that the finance ministry would work with this office, headed by Goosie Tanoh, the president’s special advisor on the 24-hour economy.
"In the coming days, we will make those policies public," he assured. The 24-hour economy will be focused on boosting productivity in real sectors like mining and agriculture.
A pledge to Ghanaians
Forson maintained that he was equipped to further the Mahama administration’s reset from the finance ministry. He said he would leverage his extensive experience in public service and finance to bring stability and growth to the economy.
“With 16 years in public service, including a stint as Deputy Minister of Finance, and experience in the private sector, I have carefully studied the trends and behaviour of Ghana’s economy. I believe I am in a better place to move our country from these uncharted waters to a stable place.”
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Source: YEN.com.gh
