Deputy Finance Minister Thomas Ampem Nyarko has defended the government’s proposal to increase the Growth and Sustainability Levy on mining companies from 1% to 3% of their gross production.
This move aims to boost national revenue generation, particularly when global commodity prices are favorable.
According to Ampem Nyarko, the modest increment is necessary to ensure the government captures a fair share of revenue from the mining sector.
He emphasized that this is a windfall tax, and with the economic rent accruing at about 14%, the current 1% levy is insufficient.
“This is a windfall tax and the minister explained clearly that the economic rent that accrues is about 14 percent and we are taking only 1 percent and that is not enough. 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”. He said
The proposed amendment also seeks to extend the sunset clause of the levy to 2028, allowing the country to benefit from mining activities for a longer period.
Ampem Nyarko reassured that the tax burden will not fall on ordinary Ghanaians, but rather on large mining companies. Additionally, the government has removed the 1.5% withholding tax on small mining companies, providing an opportunity for the country to benefit from the huge profits made by larger mining companies.
“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.”
Baina Multimedia/ Khadijahtu Kubura Kailani
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