PricewaterhouseCoopers (PwC) has called on the government to reconsider its proposed 3% increase of the Growth and Sustainability Levy, warning that the move could place an excessive burden on the mining sector.
The government has defended the planned hike, stating that it aims to ensure a fairer share of revenue from the mining industry, particularly when global commodity prices are favorable.
However, Abeku Gyan-Quansah, a tax partner at PwC, argues that rather than increasing the levy, the government should focus on strengthening the enforcement of mining royalties.
But let’s pause for a moment—I don’t support multiple tax rates. This is essentially a tax on production, and we already have a similar one in the form of royalties. Could we have simply adjusted the royalty rate instead?” he questioned.
He also expressed concerns over the long-term nature of such levies. “Historically, we’ve seen so-called ‘temporary’ taxes remain in place for decades. Since 2000, successive governments have introduced measures that were meant to be short-term, yet they continue indefinitely,” he noted.
The proposed levy increase is part of a broader strategy to boost government revenue and ensure the mining sector contributes more significantly to national development.
Presenting the 2025 Budget to Parliament, Finance Minister Dr. Cassiel Ato Forson also proposed extending the levy’s sunset clause until 2028, aiming to provide a more stable and predictable framework for its implementation.
PwC’s concerns add to the ongoing debate over the sustainability and fairness of tax policies in Ghana’s extractive industry, as stakeholders weigh the potential impact on investment and economic growth.
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