Gov’t Defends Growth and Sustainability Levy Increase for Mining Sector
Accra, March 12, 2025 – The Deputy Minister for Finance, Thomas Ampem Nyarko, has defended the government’s proposal to increase the Growth and Sustainability Levy on mining companies from 1 percent to 3 percent of their gross production.
The move, which was announced by Finance Minister Cassiel Ato Forson during the 2025 budget presentation, is aimed at boosting national revenue while ensuring that Ghanaians benefit more from the country’s natural resources.
Key Aspects of the Levy Adjustment
✔ Levy Increase: From 1% to 3% on the gross production of mining firms.
✔ Extension of Sunset Clause: The levy will now remain in effect until 2028.
✔ Focus on Large-Scale Mining: The tax is targeted at big mining companies, not small-scale miners.
✔ Removal of 1.5% Withholding Tax: Small-scale miners are exempted from an earlier tax obligation.
Government’s Justification
Speaking on the Citi Breakfast Show on March 12, Deputy Minister Nyarko emphasized that the increment was necessary to ensure that Ghanaians receive a fair share of mining revenues, particularly when global gold prices are high.
“This is a windfall tax. The minister explained that the economic rent that accrues is about 14%, and yet we were taking only 1%, which is inadequate,” Nyarko stated.
He further argued that for years, Ghanaians have complained about not fully benefiting from extractive resources, making it essential to adjust the levy in line with global market trends.
Impact on the Mining Sector
The government maintains that this tax adjustment will not negatively affect ordinary Ghanaians, as it targets multinational mining corporations that generate significant profits from Ghana’s resources.
With this revision, Ghana aims to maximize its revenue from the mining industry while ensuring that economic gains from resource extraction contribute to national development.
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