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January 14th , 2025

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NDC GOVERNMENT TO REINTRODUCE ROAD TOLLS, ATO FORSON CONFIRMS

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Finance

17 hours ago




Dr. Cassiel Ato Forson, the Finance Minister-Designate, has confirmed that the National Democratic Congress (NDC)-led government will reintroduce road tolls as part of its commitment outlined in the 2024 manifesto. This policy change marks a shift back to a system that was abolished by the previous administration under former President Nana Addo Dankwa Akufo-Addo.

During his vetting session before the Appointments Committee of Parliament on January 13, 2025, Dr. Forson assured the committee that the NDC government intends to bring back road tolls to raise revenue, a move that had been previously planned but not executed by the outgoing government. Despite signaling plans to reintroduce tolls, the Akufo-Addo administration had failed to act on the proposal before the end of its tenure. However, Dr. Forson emphasized that the NDC remains resolute in following through with its promise.

"The previous government indeed removed the road toll, but towards the end, they signaled that the road toll is coming back. They submitted it to Parliament, but it was not laid, despite a concession agreement with a company to reintroduce it," Dr. Forson explained during his vetting. He went on to reiterate the NDC's stance, stating, “The NDC indicated from day one that the road toll will come back. We are not running away from it. We are a party that sticks to our promises, and whatever we have promised to do, we will do just that.”

The reintroduction of road tolls is a significant part of the NDC's plans to generate revenue and fund infrastructure projects across the country. Dr. Forson was clear in his statement that, should road tolls serve as a viable means of raising funds for the government, the party would ensure the successful implementation of the policy.

The History of Road Tolls in Ghana

Road tolls were first introduced in Ghana in the early 1990s as a method to generate revenue specifically for the maintenance and construction of roads. Over the years, they became a common feature on major highways and roads, with vehicles required to pay a toll to use these routes. The tolls helped to fund road infrastructure projects and ensure that roads were properly maintained.

However, in 2021, the Akufo-Addo-led government made the controversial decision to abolish road tolls as part of its budget for the year. The government argued that the tolls had become inefficient to collect and were not generating enough revenue relative to the costs of running the toll system. The abolition was a part of broader budget reforms, with the government replacing road tolls with the controversial E-Levy, a new tax on digital transactions.

The removal of road tolls sparked widespread debate, with some arguing that it would lead to a shortfall in infrastructure funding, while others supported the move, believing it would reduce the burden on taxpayers. In the aftermath, there were concerns about how the government would finance critical road projects without this revenue stream.

The Return of Road Tolls: Why Now?

Dr. Forson’s confirmation that the NDC will reintroduce road tolls comes as part of the party's broader strategy to increase revenue generation for national development. Road tolls, though a contentious issue, have long been a means of financing the construction and maintenance of infrastructure in Ghana. The government believes that by reinstating the tolls, it can raise much-needed funds to support road projects and maintain the country’s transportation network.

Ghana’s road infrastructure is critical to its economic development, supporting trade, business, and mobility across the country. However, many roads in Ghana are in need of urgent repairs, and the cost of maintaining them has been rising steadily. The NDC’s return to tolling is expected to help address this gap, providing an additional source of revenue for road development and maintenance.

Dr. Forson also emphasized that the reintroduction of road tolls would be done in a manner that is transparent and efficient. The government aims to ensure that the funds collected from tolls are properly allocated to the maintenance and development of the country’s roads. This will be an important part of the NDC’s commitment to accountability and transparency in government spending.

Public Reactions and Challenges

The decision to bring back road tolls is likely to be met with mixed reactions from the public. Many Ghanaians were relieved when tolls were abolished in 2021, with some viewing the move as a welcome relief from the financial burden that the tolls imposed on commuters. However, others have argued that the tolls were a necessary tool for maintaining the country’s infrastructure and ensuring that roads remained in good condition.

The reintroduction of road tolls may also face logistical challenges, including the need to improve the toll collection system. In the past, toll booths were often criticized for long delays and inefficiencies, particularly on busy highways. As the NDC government prepares to bring back the tolls, there will likely be discussions on how to modernize the toll collection system and make it more efficient.

One possibility could be the introduction of digital or automated tolling systems, which would allow for faster and more efficient collection of tolls, reducing the need for manual toll booths. This could improve the overall experience for commuters while also ensuring that the government collects the necessary revenue.

Road Tolls and the Economy

Dr. Forson’s comments about the reintroduction of road tolls also tie into the broader economic strategy of the NDC-led government. The party’s manifesto for the 2024 election campaign included several promises to boost revenue and promote infrastructure development. The reintroduction of tolls is one of the measures that the government believes will help create a more sustainable and self-reliant economy.

As Ghana continues to face economic challenges, including inflation, debt, and a growing fiscal deficit, the government’s ability to generate revenue is crucial for its development agenda. Road tolls, as part of a diversified revenue strategy, could play a significant role in ensuring that the country can finance its infrastructure needs without overburdening taxpayers with new taxes.

In addition to road tolls, the NDC government has also committed to implementing other revenue-generating measures, including strengthening tax collection and improving public sector efficiency. The goal is to ensure that the country’s finances are managed responsibly while also investing in key sectors that will promote economic growth and development.

Moving Forward

The reintroduction of road tolls is one of several key policy initiatives that Dr. Forson has promised to prioritize if he is confirmed as Finance Minister. As the country grapples with the challenges of rebuilding its economy, this policy could provide a much-needed source of funding for road maintenance and infrastructure projects, which are critical for economic development.

While the decision to reintroduce road tolls is sure to stir debate, the government’s commitment to transparency and efficiency in the collection and use of toll revenues will be essential for ensuring that the policy benefits the country in the long term. Ultimately, the success of this initiative will depend on how effectively the government can implement it and how well it addresses the concerns of the public.

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