The Ghana Chamber of Mines has strongly rejected claims that the country’s mining sector is undertaxed, insisting instead that Ghana imposes one of the highest fiscal burdens on mining companies worldwide.
In a statement issued on April 20, 2026, the Chamber said Ghana’s current mining fiscal regime results in an effective tax rate of nearly 60 percent under prevailing conditions, placing it among the most heavily taxed mining jurisdictions globally.
The response follows recent assertions by the Institute of Economic Affairs (IEA), which described Ghana’s framework as overly reliant on royalties and raised concerns about recent changes to the Growth and Sustainability Levy (GSL).
However, the Chamber dismissed this characterisation, clarifying that Ghana operates a comprehensive royalty–tax regime—not a royalty-only system—with multiple layers of taxation applied across revenue, profits, and dividends.
These include mineral royalties ranging between 5 and 12 percent, a 1 percent GSL on mineral revenue, a 35 percent corporate income tax, and additional state earnings through dividends from free carried interest.
Collectively, these instruments ensure that government captures value at different stages of the mining value chain—irrespective of profitability,” the statement noted.
Despite this, the Chamber warned that the cumulative tax burden is placing increasing strain on mining operations, particularly for high-cost and marginal mines. It pointed out that several of the taxes are applied on gross revenue, making them less responsive to operational costs and profitability levels.
The industry body further cautioned that the layering of multiple revenue-based taxes could weaken Ghana’s competitiveness in attracting investment, potentially undermining long-term government revenue.
While acknowledging the recent reduction of the GSL from 3 percent to 1 percent as a step in the right direction, the Chamber argued that the adjustment is insufficient to significantly ease the overall burden on the sector.
The current fiscal structure requires recalibration to balance immediate revenue needs with the long-term sustainability of the industry,” it stressed.
The Chamber is therefore calling on policymakers to prioritise fiscal stability, predictability, and competitiveness, warning that these factors are critical for sustaining investment in a capital-intensive and globally competitive mining industry.
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