File photo of a mining site
The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has backed the government’s decision to increase taxes in the mining sector, stating that the Growth and Sustainability Tax is outdated.
During the presentation of the 2025 Budget Statement on March 11, 2025, Minister of Finance Dr. Cassiel Ato Forson justified the tax increase as a measure to ensure Ghana benefits from rising global gold prices. He also proposed extending the sunset clause to 2028.
However, former Deputy Minister of Finance Mona Quartey has raised concerns over the government’s decision to increase the Growth and Sustainability Levy on mining companies from 1% to 3%, warning of its potential impact on the extractive sector.
“In 2024, we saw the extractive and oil industry making strong gains in terms of production, which is influenced not only by price but also by production costs, utilities, labor, and consumables within the sector.
“That is why I am somewhat concerned about the Growth and Sustainability Levy on the extractive industry increasing,” she said in an interview on Channel One TV on March 15, 2025.
Dr. Kwakye, however, proposed the introduction of a windfall tax of at least 10% on the mining sector.
“The fact is that the Growth and Sustainability Tax is obsolete, having been introduced in 2001 as a Fiscal Stability Tax. However, a higher tax on the mining sector is justified. Indeed, what is needed is a Super-profit or Windfall Tax of at least 10%,” he wrote on X on March 16, 2025.
SSD/MA
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