A contentious debate has arisen over the government’s plan to increase the Growth & Sustainability Levy on mining companies from 1% to 3%, as announced in the 2025 budget statement.
Mona Quartey, former Deputy Finance Minister, has been a critic, warning that this policy change could place pressure on the extractive sector at a time when it is crucial for Ghana’s economic recovery.
While Finance Minister Dr. Cassiel Ato Forson defended the move as a necessary strategy to help Ghana capitalize on rising global gold prices, and even proposed extending the sunset clause to 2028, Quartey remains cautious about its long-term impact. Speaking on the Big Issue on Citi FM, she acknowledged the need for revenue generation but stressed that any such measure should be temporary.
According to her, the extractive sector was performing relatively well in terms of production. She explained: “In 2024, we saw the extractive and oil industry coming in strongly in terms of production, which is not only held by price but also by the cost of production. So, utilities, people, the consumables that are bought in that space.
That is why I will say right now that I am a little concerned about the Growth and Sustainability Tax on the extractive industry going up.
I wish that would be the case, but in the context that right now, our major source of funding will be from the tax refund account, and trying to navigate the space to make some money, maybe that may be a measure that will come in, but not for long.
Because that sector or industry is one that will help this nation to come out of its debt, and it is because they bring in the foreign currency,” she stated.
Stakeholders in Ghana’s mining sector have also been taken aback by the government’s sudden move to increase the Growth and Sustainability Levy from 1% to 3% on gross production. Industry leaders claim the decision was made without prior consultation, catching them off guard.
