The Ghanaian mining industry has been left stunned by the government’s unexpected decision to triple the Growth and Sustainability Levy from 1% to 3% on gross production. Industry leaders say they were caught off guard, with no real consultation before the announcement in Finance Minister Dr. Cassiel Ato Forson’s 2025 Budget.
For Sulemana Koney, CEO of the Ghana Chamber of Mines, the issue isn’t just the tax increase—it’s the sudden shift in policy. According to him, the government had initially suggested only a small adjustment, with President Mahama himself hinting at a 1% increase during the National Economic Dialogue. Instead, miners were hit with a threefold hike that will significantly impact both current and future investments.
“What concerns me most is the lack of consultation. I am aware of companies actively seeking investors to expand their operations and take advantage of high gold prices. Some of these investors have even approached me. Yet without warning, the government introduces a policy like this. We were only informed briefly yesterday (Monday) around 5:30 PM, with no clear explanation of the basis for this decision,” Koney explained.
“We understand the economy is struggling, but should the burden fall disproportionately on businesses that are already contributing through various taxes and levies?” he asked.
Players in the mining industry argue that fiscal unpredictability is the real concern. The levy applies to revenue before cost deductions, cutting directly into profits. This, coupled with uncertainty about future tax policies, may make Ghana less attractive for mining investments. Koney warned that constant policy shifts create an unstable business environment, making it harder for companies to plan long-term.
Another major concern is the extension of the levy’s sunset clause from 2025 to 2028. Industry executives fear this could keep getting pushed forward indefinitely, turning what was meant to be a temporary measure into a permanent financial burden.
“Ghana has long been known for political stability and smooth transitions of power, but uncertainty in fiscal policies undermines that advantage. When businesses cannot plan long term due to abrupt tax hikes, it affects confidence in the entire investment climate,” he remarked.
Despite industry pushback, the government insists the new rate is necessary. Finance Minister Dr. Forson defended the increase, arguing that Ghana has not fully benefited from its mineral wealth. He pointed out that while natural resource makes up 14% of GDP, revenue from the sector contributes only 1.5%.
But for mining leaders, the tax hike raises more questions than answers. If policies can shift this drastically without warning, what guarantees do businesses have that the next major decision won’t put them at even greater risk?
