The Ghana Chamber of Mines is calling on the government to reduce the Growth and Sustainability Levy from 3% back to 1% in the upcoming mid-year budget review, arguing that the current rate is disproportionately burdening smaller mining companies.
Speaking at a press briefing in Accra on Tuesday, the Chief Executive Officer of the Chamber, Dr Kenneth Ashigbey, highlighted the sector’s vital role in Ghana’s economic stability and currency performance.
“There have been conversations about the Growth and Sustainability Levy. Our hope is that it would be reduced in the mid-year budget. The macro-economy is pointing in the right direction. The strength of the cedi currently is predominantly based on gold,” he stated.
Dr Ashigbey noted that under the Bank of Ghana’s domestic gold purchase programme last year, mining firms sold 358,218 ounces of gold to the central bank, bolstering reserves and strengthening the local currency. He also cited the ongoing Voluntary Forex and Gold Purchase Initiative as evidence of the sector’s commitment to national economic growth.
He warned that maintaining the levy at 3% could undermine smaller mining firms that lack the revenue buffers of larger operators, potentially hampering sector growth and investment inflows.
“Reducing the levy would bring greater stability to the mining sector and serve as an incentive for further investment,” he said.
Dr Ashigbey urged policymakers to weigh the long-term sustainability of the mining industry in fiscal decisions, given its outsized contribution to foreign exchange earnings and economic resilience.
The Growth and Sustainability Levy was increased from 1% to 3% in March during the presentation of the budget by Finance Minister Cassiel Ato Forson.
