Ghana’s mining trade has warned that an efficient tax burden of as much as 58% may discourage funding, sluggish mine enlargement and undermine the sector’s long-term competitiveness.
Michael Edem Akafia, former president of the Ghana Chamber of Mines, issued the warning on the chamber’s 98th annual common assembly in Accra, the place trade leaders questioned the cumulative weight of latest taxes, royalties and statutory charges.
The chamber’s annual report mentioned mining firms absorbed important value stress in 2025 as a result of appreciation of the cedi, increased working bills and better enter prices, due partially to geopolitical tensions within the Center East.
Latest fiscal reforms have additional elevated that burden. The federal government elevated the Progress and Sustainability Levy (GSL) from 1% to three%, then lowered it to 1% in March 2026. On the identical time, the flat 5% royalty on mines with out improvement agreements was changed with a sliding scale that will increase with the rise in gold costs, reaching as much as 12% at peak costs.
The chamber welcomed the GSL discount, however argued that rising royalties during times of excessive costs would considerably improve the burden on gross mineral revenues. Mixed with company taxes, state free carryover curiosity and different statutory levies, the general burden is estimated at 54 to 58 %, among the many highest of any mining jurisdiction on the planet, in line with the report.
The report notes that the stress is biggest on high-cost companies with market reversals as a result of royalties are based mostly on whole income quite than income. Business leaders mentioned the regime may weaken mission economics, dilute revenue margins, stifle exploration and discourage funding wanted to increase the lifetime of growing old mines.
The Chamber of Commerce and Business due to this fact known as on the federal government to overtake the mining finance system and produce Ghana’s tax system nearer to that of competing mining international locations.
Mining communities nonetheless ready for advantages
Past taxes, the chamber expressed concern that there was little improvement in lots of mining communities, although the sector stays one in every of Ghana’s largest sources of revenue.
In keeping with the report, the state of affairs in some blocks falls wanting the trade’s standing as a significant contributor to home revenues. “This reinforces public considerations that mining revenues are usually not being translated into tangible regional improvement,” the chamber mentioned.
The group reiterated its long-standing name for at the very least 30 % of mineral royalties to circulate on to mining communities for native improvement. It additionally renewed its name for the enactment of the Mineral Income Administration Act, which governs how mineral income is collected, distributed, and disbursed.
Chamber of Commerce helps evaluate of mining legal guidelines
The Chamber welcomed the continued evaluate of the Minerals and Mining Act by the Division of Land and Pure Assets and the Minerals Fee. Whereas supporting the purpose of maximizing nationwide advantages from mining, he known as on policymakers to guard the sector’s competitiveness and attraction to traders.
Mining stays Ghana’s largest export earner and main supply of international alternate, with gold manufacturing anticipated to achieve document ranges by 2025. Nonetheless, executives argue that future progress will depend on a steadiness between elevated state income and an funding atmosphere that may nonetheless attract new capital for exploration, mine improvement and enlargement.
