The Deputy Minister for Finance, Thomas Ampem Nyarko, has expressed strong support for the government’s proposal to increase the Growth and Sustainability Levy on mining companies, highlighting the need for a fairer contribution from the sector to boost national revenue.
Speaking on Accra-based Citi FM on Wednesday, March 12, he explained that the proposed adjustment aims to raise the levy from 1 per cent to 3 per cent of the gross production of mining firms.
He described this move as part of the government’s broader strategy to ensure the mining sector contributes more significantly to the country’s revenue base.
“This is part of the government’s broader strategy to ensure a more significant contribution from the mining sector to the country’s revenue base,” Mr. Nyarko emphasised, adding that the sector’s wealth must be better harnessed for the benefit of the nation.
The proposal was first presented by Finance Minister Cassiel Ato Forson during his address on the 2025 budget to Parliament on Tuesday, 11th March, alongside the increase in the levy, the government is seeking to extend the sunset clause of the levy until 2028, allowing the country to continue benefiting from mining activities for an extended period.
He further elaborated on the rationale behind the decision, underscoring the importance of the levy increase in securing a fair portion of revenue from the mining sector, particularly when global commodity prices are favourable.
This is a windfall tax, and the minister made it clear that the economic rent from mining is around 14 per cent, yet we are currently only taking 1 per cent, which is insufficient.
Ghanaians have long voiced concerns about the country not benefitting enough from our extractive resources. So, when global gold prices increase, it’s only fair that we capture a greater share, Mr Nyarko said.
He also pointed out that the burden of the tax would not fall on ordinary Ghanaians but would instead target large mining companies.
Additionally, Nyarko noted that the government had removed the 1.5 per cent withholding tax on small-scale mining companies, creating a significant opportunity for the country to benefit more from the substantial profits made by larger mining firms.
“This provides an opportunity for the country to earn a larger share of the significant profits generated by these companies,”he added.
Mr. Nyarko concluded by urging that the adjustment be seen as a step towards ensuring a fairer distribution of wealth.
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