In a bid to implement austerity measures aimed at easing financial burdens on businesses and households, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, announced the removal of key levies, including the Betting Tax and the Electronic Transaction Levy (E-Levy), in the 2025 Budget. However, while these cuts were widely welcomed, concerns have emerged over new fiscal policies that could pose challenges for key economic sectors, particularly mining.
Former Finance Minister Dr. Mohammed Amin Adam, speaking in an interview on Citi TV on March 17, 2025, commended the tax relief measures but raised alarms over the sharp increase in the Growth and Sustainability Levy on mining firms, which has surged from 1% to 3%.
“I think the Finance Minister has delivered, but he has also introduced additional tax burdens. If the sector that drives economic growth is the one facing the steepest tax hikes, what kind of economic strategy is that?” Dr. Amin Adam questioned.
The former minister warned that increasing fiscal pressure on the extractive industry—one of Ghana’s economic pillars—could have unintended consequences, potentially discouraging investment and slowing down growth.
“I’m not saying don’t tax the extractive sector,” he clarified. “But if we acknowledge that mining significantly contributes to our economy, why impose excessive levies on the very industry that fuels our growth? Are we taxing the hen that lays the golden egg?”
Government has set an ambitious 2025 revenue target of GHC 224.9 billion, a significant jump from GHC 186.6 billion in 2024. Analysts, including Deloitte, acknowledge the potential benefits of enhanced revenue measures. However, they caution that success hinges on the effective implementation of these policies and a delicate balancing act to ensure they do not stifle economic momentum.
As Ghana navigates its fiscal landscape, the debate over taxation policies especially in the mining sector remains central. Policymakers will need to weigh short-term revenue gains against long-term sectoral stability to maintain investor confidence and sustain economic growth.
