Deputy Minister for Finance, Thomas Ampem Nyarko, has defended the government’s proposal to increase the Growth and Sustainability Levy on mining companies.
The proposed adjustment seeks to raise the levy from 1 percent to 3 percent of mining firms’ gross production to boost national revenue generation.
Finance Minister Dr. Cassiel Ato Forson announced this during his presentation of the 2025 budget to Parliament on Tuesday, March 11.
Additionally, the government is proposing an extension of the sunset clause of the levy to 2028, ensuring sustained revenue from mining activities.
Speaking in an interview with Citi FM, Hon. Ampem Nyarko justified the increase, explaining that it is necessary for Ghana to gain a fair share of revenue from the mining sector, particularly when global commodity prices are favorable.
“This is a windfall tax, and the minister explained clearly that the economic rent that accrues is about 14 percent, yet we are taking only 1 percent, which is inadequate. Ghanaians have complained for years about not benefiting enough from our extractive resources. So, if global gold prices rise, it is only fair that we capture a bit more from that,” he argued.
He further clarified that the levy targets large-scale mining firms and not the ordinary Ghanaian.
“The incidence of this tax is not on the ordinary Ghanaian but on the big mining companies. Even beyond that, we have removed the 1.5 percent withholding tax on small-scale mining companies. This presents an opportunity for the country to gain a little more from the significant profits made by large mining firms,” he added.