Minister of Finance, Dr. Cassiel Ato Forson
Tax consultant Fred Awutey has argued that the proposed 3 percent increase in the Growth and Sustainability Levy on mining companies, as announced by the government, may not be a bad move.
However, he emphasised the need for a critical examination of its implementation.
He noted that some mining companies have stability clause agreements already enshrined in their mining contracts.
His comments follow an announcement made by the Minister of Finance, Dr. Cassiel Ato Forson, during the 2025 budget presentation to Parliament on Tuesday, March 11, 2025.
As part of the proposed amendment, the government is also seeking to extend the sunset clause of the levy to 2028, ensuring that the country continues to benefit from mining activities for a longer period.
Speaking to GhanaWeb Business, Fred Awutey stated that for the government to achieve this objective, it needs to collaborate effectively with stakeholders within the mining sector to ensure the best possible outcome for all miners and enhance the sector’s competitiveness.
“If you look at 1.5% on unprocessed gold, that is a significant amount of money. Since this tax has not been collected as effectively as it should be, it makes sense to remove it. However, introducing a new tax by increasing the Growth and Sustainability Levy on mining companies suggests an attempt to substitute that tax,” he told GhanaWeb Business.
“We must also be mindful that not much revenue has been generated from the mining sector. So, increasing the Growth and Sustainability Levy from 1% to 3% of gross production may not be a bad move. However, we must carefully consider its implementation, especially since some mining companies have stability clause agreements in their contracts,” he added.
Fred Awutey continued, “We also need to assess the country’s revenue generation capacity, as it does not appear that we get substantial revenue from the mining sector.”
SP/MA
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