The Chief Executive Officer of Dalex Finance, Joe Jackson, has acknowledged that the scrapping of the E-Levy and betting tax will provide financial relief for Ghanaians but warns that the government faces a tough challenge in replacing lost revenue.
Speaking on Morning Starr with Joshua Kodjo Mensah, Mr. Jackson noted that these tax cuts, which align with public sentiment and the government’s manifesto promises, will free up an estimated GHS 2 billion in disposable income.
However, he cautioned that the country must now find ways to balance the budget without introducing new financial burdens elsewhere.
“Yes, it is true. Ghanaians have indicated that they don’t like the E-Levy. They find it as a double burden. Similar sentiments have been expressed about the betting tax,” he said. “It was also promised in the manifesto, and the government has followed through by scrapping them. To that extent, Ghanaians should be happy.”
While the tax removals are a positive development for consumers, Mr. Jackson highlighted that the government has already moved to offset the lost revenue by increasing taxes in other sectors.
“The mining companies have been asked to pay more in the Growth and Sustainability Levy, and the tax refund rate has been adjusted downward from 6% to 4%,” he explained. “These are the two main measures intended to counterbalance the revenue loss.”
When asked whether these measures would provide the necessary cushioning, Mr. Jackson expressed cautious optimism but maintained a level of skepticism.
“It will go a long way to provide relief, but there is some doubt that it will cover everything. At this moment, it is skepticism rather than specific knowledge. We will have to wait and see how well the revenue measures bridge the expenditure gap,” he stated.
The Dalex Finance CEO also weighed in on the government’s decision to extend the Special Import Levy until 2028, acknowledging that while such measures may not be popular, they are necessary given the country’s economic reality.
“We are coming from a period of crisis, where servicing our debt consumed 50% of our tax revenue. We are not out of the woods yet. Whatever happens, there’s going to be some amount of pain,” he cautioned.
He emphasized that Ghana’s economic recovery will require difficult decisions, noting that there is no quick fix to the country’s fiscal challenges.
“We are not going to get out of this situation in a painless manner. We’re not going to get out of this by spending our way out of it. We’re going to get out of this by facing up to the challenges, by taking the difficult decisions, and realizing that sometimes, there’s no substitute for the sacrifices we must make to better our future,” he stressed.
Reflecting on the government’s 2025 budget, Mr. Jackson described it as a “high-wire act” aimed at addressing multiple demands from Ghanaians while ensuring economic stability.
“Ghanaians had expressed clearly that they didn’t want certain taxes, but they also wanted other things. We wanted teacher training allowances paid. We wanted nursing training allowances paid. We wanted infrastructure. So it was always going to be a balancing act,” he noted.
While technical issues disrupted parts of the interview, Mr. Jackson’s core message remained clear Ghana’s tax cuts are a step toward financial relief for citizens, but the country must prepare for difficult economic adjustments in the coming years.
“At this moment, we all have to wish the government well so that it will be able to bring relief,” he concluded.