If You Remove Betting Tax and E-Levy, Where Will Revenue Come From? – Joe Jackson to Mahama
Business consultant and economist, Joe Jackson, has raised a pertinent question in response to former President John Dramani Mahama’s call for the removal of certain taxes, specifically the betting tax and the controversial E-Levy. Jackson, in a recent interview, challenged Mahama to provide a clear answer on how the government would generate revenue if these taxes were abolished.
Mahama, a key figure in the National Democratic Congress (NDC), has been vocal about his opposition to the E-Levy, arguing that the tax burden on Ghanaians is already too high. Additionally, he has criticized the betting tax, suggesting that its removal could stimulate economic growth, especially in sectors like sports and entertainment.
However, Jackson questioned the feasibility of Mahama’s proposal, pointing out that removing these taxes could create a significant revenue shortfall for the government. “If you take away the betting tax and the E-Levy, where do you expect the government to find alternative sources of income?” Jackson asked. He emphasized that taxes such as the E-Levy and betting tax were introduced to help bridge the government’s revenue gap, especially amidst the country’s growing fiscal deficit.
The betting tax, which was implemented as part of an effort to regulate the booming gaming industry, provides a substantial portion of the country’s tax revenues. Similarly, the E-Levy was introduced as a new tax measure to generate revenue for government projects, particularly infrastructure and social programs. According to Jackson, scrapping these taxes without offering a viable replacement would further deepen the country’s fiscal challenges.
Jackson’s comments reflect the broader debate about tax policy in Ghana, where there is increasing pressure to strike a balance between generating revenue and easing the financial burden on citizens. While the government seeks to improve its fiscal position, critics argue that certain tax policies disproportionately affect the population, particularly the E-Levy, which has been widely criticized for its impact on mobile money transactions.
In conclusion, Joe Jackson’s remarks underscore the complexity of managing a nation’s tax policies and the need for a careful approach to fiscal reform. As the government and opposition continue to debate these issues, the challenge remains to find sustainable ways to raise revenue while ensuring the economic well-being of the people.
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