Joe Jackson, the Chief Executive Officer of Dalex Finance, has cautioned that the incoming administration under President-elect John Dramani Mahama will face significant challenges in managing the economy, particularly regarding the manifesto pledge to scrap certain taxes, including the controversial e-levy.
Ahead of the 2024 general elections, Mahama had promised to eliminate several taxes he described as burdensome to Ghanaians, with plans to do so within his first 100 days in office. These taxes include the e-levy, COVID levy, a 10% tax on betting, the emissions levy, and import duties on vehicles and equipment for industrial and agricultural purposes.
In a discussion on TV3 on December 13, 2024, Joe Jackson acknowledged the difficulties that the new administration will face in the coming years, especially in light of these tax cuts. “In 2025, we have to look at how we are performing in terms of revenue because some of the items are going to go out,” he explained, highlighting that the removal of these taxes will create gaps in government revenue.
Jackson further emphasized that the challenge for Mahama’s administration would be enormous, given the need to balance tax reductions with maintaining fiscal stability. “There has been a manifesto commitment to take out the e-levy, betting tax, the covid levy. A lot of issues are going to come out, and I have no doubt in my mind that the challenge is going to be huge,” he said.
When asked why anyone would want to step into the presidency under such difficult circumstances, Jackson responded, “Because somebody has to step up and rule, somebody has to step up and fix the country, somebody has to step up.”
As Mahama prepares to take office, the economic challenges, particularly in terms of revenue generation, will likely remain a critical focus for his administration.
