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0 The CEO of Dalex Finance has weighed in on the new mining tax introduced after the 2025 budget statement, stating that the burden of economic recovery must be shared.
Joe Jackson speaking on Joy News’ PM Express Business Edition on Thursday, March 13, he made it clear that there was no painless way out of the current economic challenges.
“There has to be some pain. We’re not going to get out of this painlessly. Whatever was going to happen, somebody was going to go away from the table unhappy because you’re going to pay more tax,” he stated.
The Renowned economist pointed to the difficult balancing act the government had to perform in crafting the budget.
Addressing public discontent over previous tax measures, he acknowledged the widespread opposition to the E-Levy, COVID-19 levy, and betting tax, which many Ghanaians demanded be removed.
“As much as a collective, as Ghanaians, we all said we don’t like the E-Levy, COVID-19 levy, and betting tax. Take them off and we could go through the list of each tax handle.
“Taking them off meant there was a hole that had to be filled, or the drastic drop in expenditure would also not be good.”
With the government seeking alternatives, the economist explained why the mining sector was targeted for increased taxation.
“It is going to be the mining sector. Some of us will say, well, it’s okay if they enjoy more rent than they should. If you look at retention, the mining sector retention is less than 10%, especially from the gold sector.”
He anticipated pushback from industry players but remained resolute.
“I know the Chamber of Mines will come hard at me. It’s not about apportioning blame; it’s that we are in a crisis, and who should bear some of the pain?”
He justified the government’s decision by highlighting the relative stability of the mining industry’s revenue compared to other sectors.
“Why should it be borne by the mining sector? Because for all the other sectors, it’s the one sector that has been exporting. It’s the one sector that means their revenues have been insulated from all the turmoil locally.”
Unlike institutions that operate solely within the domestic economy and struggle with depreciation and inflation, mining companies continue to generate foreign exchange, making them a viable target for taxation.
Acknowledging the difficulty of the situation, he underscored that the decision was about economic survival rather than fairness.
“He represents institutions whose revenues are all in cedis. They can’t bear any more pain. So to that extent, we will go with the flow.”
