Private legal practitioner, Martin Kpebu has said that concerns raised by the Chamber of Mines against the increment in the Growth and Sustainability Levy from one per cent to three per cent on gross production, are not surprising.
He noted that all over the world, businesses oppose moves by central governments to impose or increase taxes.
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“If you compare, all over the world businesses will always fight the government the moment the government seeks to implement any fiscal policies that will result in them paying more taxes. I am doing a research on the North Sea, you check, from the 60s to date, when the government brings any increment in taxes they will complain.
“So it is normal for the businesses to complain, the moment they see that their profits will be reduced by even on cedi they will complain,” he said on TV3’s Key Points on Saturday, March 16.
His comments come at a time when Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, criticised the government’s approach, saying the industry was blindsided by the policy shift.
“What concerns me most is the lack of consultation. I am aware of companies actively seeking investors to expand their operations and take advantage of high gold prices. Some of these investors have even approached me. Yet without warning, the government introduces a policy like this. We were only informed briefly yesterday (Monday) around 5:30 PM, with no clear explanation of the basis for this decision,” he explained.
According to Mr. Koney, the government had previously suggested only a marginal increase in the levy. The decision to move from one percent to three percent, he said, represents a drastic shift that could impact both existing and prospective investments.
“We understand the economy is struggling, but should the burden fall disproportionately on businesses that are already contributing through various taxes and levies?” he asked.
Similarly, a former Deputy Minister of Finance, Mona Quartey, has raised concerns over the government’s decision to increase the Growth & Sustainability Levy on mining companies from 1% to 3%, warning of its potential impact on the extractive sector.
During the presentation of the 2025 Budget Statement on March 11, 2025, the Minister of Finance, Dr. Cassiel Ato Forson, justified the levy hike as a strategy to ensure Ghana benefits from rising global gold prices. He also proposed extending the sunset clause to 2028.
Speaking on Channel One TV on March 15, 2025, Mona Quartey acknowledged the need for revenue generation but cautioned that the increased levy could place undue pressure on the industry at a critical time.
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According to her, while the measure may provide short-term benefits, it should not be prolonged, as the extractive sector plays a crucial role in Ghana’s economic recovery.
“In 2024, we saw the extractive and oil industry making strong gains in terms of production, which is influenced not only by price but also by production costs, utilities, labor, and consumables within the sector.
“That is why I am somewhat concerned about the Growth & Sustainability Levy on the extractive industry increasing.
“I would prefer otherwise, but considering that our major source of funding right now comes from the tax refund account, and the government is trying to navigate the fiscal space to generate revenue, this measure may be necessary but only for the short term.
“This sector is crucial in helping Ghana recover from its debt crisis, as it brings in much-needed foreign currency,” she stated.
