When Illegality starts paying Tax: A dangerous precedent
Recent developments following a JoyNews investigation revealed that operators of "changfan" machines in some mining communities were allegedly making payments to local authorities. These payments, reportedly collected by some District Chief Executives (DCEs), have been described as contributions toward Internally Generated Funds (IGF). This explanation has triggered a national debate.
Under Ghanaian law, illegal mining-particularly river-based operations involving changfan machines-is prohibited. District assemblies do not have the mandate to tax activities that are unlawful. Ghana's major rivers, including the Pra, Ankobra, and Offin, have suffered extensive degradation due to illegal mining. Civil society organisations have strongly pushed back against the development, stating that illegal activities cannot be regularised through informal taxation.
The subsequent engagement between civil society groups and the President has provided some clarification, with a renewed emphasis on the government's commitment to fighting illegal mining. Public perception has already been shaped by the initial interpretation of events, and restoring confidence will require more than reassurance-it will require decisive action.
Quick Summary
A JoyNews investigation has uncovered that operators of illegal mining operations are allegedly making payments to local authorities. The payments are reportedly contributions toward Internally Generated Funds (IGF) - sparking a national debate.
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