Ghana’s extractive sector is set for a major fiscal shift as the Ghana Revenue Authority (GRA) reveals plans to introduce windfall taxes in the medium term.
This move comes amidst heightened concerns over the recent increase in the Growth and Sustainability Levy from 1% to 3%, which the government argues is a temporary measure to capture the extraordinary profits being recorded in the sector due to soaring gold prices.
Speaking at the 2025 post-budget forum, Acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, justified the tax hikes, emphasizing that mining firms are benefiting immensely from record-high gold prices while Ghana lacks a dedicated windfall tax mechanism.
A windfall tax is a higher tax rate imposed by governments on businesses or industries that experience unexpected, excessive profits due to favorable market conditions, such as surging commodity prices or economic crises. It is often applied to sectors like oil, gas, or mining when global prices spike, ensuring that companies share their extraordinary gains with the state to support public spending or economic stability.
Anthony Kwasi Sarpong says the government will in the medium term introduce a windfall tax policy which will enable the state to benefit from the windfall in the extractive industry.
“In the medium term, we will then look at the policy on windfall tax and bring it in,” the GRA boss revealed.
However, the planned introduction of a windfall tax in the near future raises critical concerns about the investment climate and fiscal stability of the mining sector. While governments worldwide impose windfall taxes to capture excessive profits during commodity booms, extractive sector firms often argue that such levies introduce unpredictability and discourage long-term investment.
As discussions on the country’s fiscal framework evolve, policymakers will face the challenge of balancing revenue mobilization with maintaining a stable and attractive investment climate.
This announcement from the GRA boss will come as good news to the Country Director of Consumer Unity & Trust Society – CUTS International, Lawyer Adomako Kusi Appiah who has been campaigning for the introduction of such a tax.
He believes windfall tax is another way the government could raise revenues to cushion low-income earners and vulnerable groups in the country. He maintains windfall taxes could also be of great benefit to consumers by redistributing wealth and easing burdens in times of crisis.
