Deputy Finance Minister Reaffirms Government’s Commitment to Tax Cuts and Economic Reforms
Deputy Finance Minister Thomas Nyarko Ampem has reiterated the government’s commitment to fulfilling its campaign promises, including the removal of certain taxes, as part of broader economic reforms aimed at stabilizing and growing the economy.
Speaking on the sidelines of the National Economic Dialogue (NED) in an interview on Channel 1’s Point of View, the minister assured Ghanaians that the upcoming budget presentation would reflect these commitments.
“President Mahama is determined to fulfill all the campaign promises that he made to Ghanaians, and that includes the taxes that he promised we will remove. By the 11th of this month, when the finance minister presents the budget, you will realize that the merchant tax will be removed, among others,” he stated.
Addressing concerns about potential revenue losses from tax cuts, Mr. Ampem pointed out that the government has identified a significant tax gap, particularly in VAT collection.
He noted that an internal assessment showed a 61% VAT gap, meaning that only 39% of potential revenue is being collected.
“We are going to ensure that we bridge that gap, and that will make up for the losses from the removal of certain taxes,” he explained. “Some taxes that were suspended by the previous government due to elections may also be reconsidered to enhance revenue generation.”
The Deputy Finance Minister emphasized that the upcoming budget would provide more clarity on the government’s fiscal strategy.
He highlighted key insights from recent economic assessments, stating that at the current rate of economic growth, Ghana may not attain middle-income status until 2050.
However, with moderate reforms, the target could be achieved by 2042, while an ambitious approach could further accelerate progress.
“The choice is ours. That is why these discussions are crucial for national consensus on the path forward,” he remarked.
He expressed concern over the absence of opposition members at the dialogue, noting that national economic planning requires bipartisan engagement.
Reflecting on Ghana’s history of alternating political leadership, he underscored the importance of continuity in economic policies.
“Since 1992, we have changed government between the NDC and NPP. It is possible that in the next 16 or 20 years, another party will take over. What would be the gain if we plan now only for them to undo it later? Economic policies must be built on consensus,” he noted.
The National Economic Dialogue is expected to generate actionable recommendations that will shape government policies and strategies to ensure long-term economic stability and growth.
The Finance Minister will present the full budget on March 11, outlining the government’s economic agenda for the coming fiscal year.
