Economist Warns Against Betting Tax Removal
Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has cautioned President John Dramani Mahama against eliminating the betting tax. He argues that the measure is a crucial revenue stream for the economy and warns that its removal could have significant fiscal consequences.
Betting Industry’s Expanding Role in the Economy
Dr. Kwakye highlights that the betting industry is growing rapidly and, if properly regulated, can serve as an essential contributor to government revenue. Instead of scrapping the tax, he suggests that authorities focus on improving tax collection and addressing loopholes to enhance the efficiency of the fiscal system.
In a post on X, Dr. Kwakye described the idea of leaving betting untaxed as “fiscally ill-advised and, indeed, suicidal.” He stresses that the industry holds significant potential for tax revenue, and eliminating this source of income would undermine public finances.
Calls for Alternative Revenue Strategies
The economist recommends that the government broaden the tax base, improve tax administration, and maximize earnings from natural resource revenues as alternative means to compensate for potential tax removals. He suggests that these measures could offer more sustainable solutions without jeopardizing critical revenue streams.
Dr. Kwakye’s remarks come as Finance Minister Dr. Cassiel Ato Forson is reportedly leading efforts to implement President Mahama’s campaign promise to remove the betting tax. The issue has been a topic of public discussion since its introduction, with differing opinions on its economic impact. As the government finalizes budget plans, the debate over balancing tax policy and economic growth is expected to continue.
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