The CEO of Dalex Finance, Joe Jackson, has defended the government’s decision to introduce a new mining tax following the 2025 budget statement, emphasizing that economic recovery must be a shared responsibility.
Speaking on Joy News’ PM Express Business Edition on Thursday, March 13, Jackson stated that there was no painless way out of the country’s 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 said.
The economist acknowledged public frustration over previous tax measures, including the E-Levy, COVID-19 levy, and betting tax, which many Ghanaians have opposed.
“As much as a collective, as Ghanaians, we all said we don’t like the E-Levy, COVID-19 levy, and betting tax. Taking them off meant there was a hole that had to be filled, or the drastic drop in expenditure would also not be good,” he explained.
He justified the government’s decision to impose higher taxes on the mining sector, arguing that it was one of the few industries generating stable foreign exchange revenue.
“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 noted.
While he anticipated resistance from industry players, Jackson insisted that tough measures were necessary to navigate the economic crisis.
“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?”
According to him, unlike businesses operating solely within the domestic economy, mining companies have been shielded from the effects of currency depreciation and inflation, making them a viable target for taxation.
“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,” Jackson concluded.
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