Joe Jackson, CEO of Dalex Finance, has called on the incoming government to intensify efforts in combating corruption and strengthening tax administration in Ghana.
Speaking on ABC News GH on Monday, December 16, Mr. Jackson emphasized the need to recover looted funds and improve the efficiency of tax collection.
“We have to attack corruption,” he stated. “In fact, one of the things we must do is to recover all the monies that have been looted or supposedly looted.”
He highlighted the importance of integrating tax databases to streamline collections and close loopholes in the system.
“One good thing the government can do is to put together the tax database. You see, you go to the port, you bring in ten containers, you pay some tax there, and then you come and pay income tax. At the moment, there is no direct link. So, you could be clearing one thing on one side and another thing on another side. When we bring them together, it will help improve our tax collection,” he explained.
Mr. Jackson urged the incoming administration to link all tax data systems, including VAT, port taxes, and income tax. “We should link all the tax databases together—VAT, the port, income tax—all of them must come together,” he reiterated.
On taxing betting activities, Mr. Jackson expressed his personal aversion to betting, describing it as harmful to the youth.
“I very personally detest betting, and I think it’s a way of diverting the little income the youth have into a different pocket. I absolutely have no problem taxing betting and even taxing it more because betting is an addiction that is destroying the youth of this country. Anything that makes it less attractive is good,” he said.
President-elect John Mahama has pledged to scrap certain taxes, including the E-levy, COVID Levy, 10% tax on betting winnings, and Emissions Levy, as part of his first 120-day social contract with Ghanaians. These measures aim to alleviate hardships and reduce the cost of doing business.
However, the feasibility of these tax cuts remains under scrutiny due to Ghana’s ongoing revenue challenges.
In 2023, the E-levy generated GH₵1.19 billion, while the Ghana Revenue Authority reported GH₵15 million in a single month from betting taxes.
Fitch Solutions has noted that removing these taxes would have minimal fiscal impact, accounting for only 3% of total revenue.
Still, Ghana faces a low tax-to-GDP ratio of 13.8%, below the government’s target of 18-20% by 2027, and struggles with a widening fiscal deficit and rising debt.
While tax cuts could stimulate economic activity, they also risk exacerbating the fiscal deficit and hindering public services.
Balancing revenue needs with growth remains a critical challenge for the incoming administration.
