The Deputy Minister for Finance, Thomas Ampem Nyarko, has defended the government’s proposal to increase the Growth and Sustainability Levy imposed on mining companies.
The proposed adjustment will see the levy rise from 1 percent to 3 percent of the gross production of mining firms, a move aimed at bolstering national revenue generation.
The announcement was made by Finance Minister Cassiel Ato Forson during his presentation of the 2025 budget to Parliament on Tuesday, March 11.
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.
In an interview on the Citi Breakfast Show on Wednesday, March 12, Ampem Nyarko elaborated on the rationale behind this decision.
According to him, the modest increment is necessary to enable the government to capture a fair share of revenue from the mining sector, particularly in times when global commodity prices are favourable.
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.
“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.”
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