Adnan Adams Mohammed
Government actors have justified the upward adjustment in the Growth and Sustainability Levy imposed on mining companies from 1. 0 percent to 3.0 percent, showing an increase of 2.0%.
Although, industry players are against the increment as announced in the 2025 budget, the government believes it is a fair adjustment as commodity prices remain favorable to miners.
According to the government, the increment is a response to citizen’s call on government to maximize revenue from the extractive sector for national development.
“This is a windfall tax and the minister explained clearly that the economic rent that accrues (from Ghana’s mineral wealth) is about 14 percent and we are taking only 1 percent and that is not enough”, the Deputy Minister for Finance, Thomas Ampem Nyarko noted..
“Ghanaians have been complaining for so many years about us not taking advantage and getting enough benefits from our extractives and so if the world market prices of gold go up, it is just good that we benefit a little more on that.
“And the incident of this tax is not on the ordinary Ghanaian but the big mining companies. Even subsequent to that, we had removed the 1.5 percent withholding tax on the small mining companies so this is an opportunity for the country to make a little more from the huge profits that the big mining companies make.”
As part of the proposed amendment, the government is also seeking to extend the sunset clause of the levy to 2028, thereby ensuring that the country continues to benefit from mining activities for a longer period.
Meanwhile, the Association of Ghana Industries (AGI) has warned that the move would negatively impact their operations.
“The Growth and Sustainability Levy for example, affects industry in a big way. And we had been engaging government all these years about it and they assured us that by the end of this year, this levy will be gone and so to have it extended to 2028 is a big blow to us”, the Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, said in an interview last week.
“We intend to engage with the government to see if this 2028 date will be reconsidered to ensure that we bring it closer because we have made plans towards it because if you are taking 1 percent to 5 percent of revenue, it is naturally going to affect us in industry, especially in the time that we are expected to create more jobs under the 24-hour economy.”
