Parliament has passed the Growth and Sustainability Levy (Amendment) Bill, 2025 to raise levies imposed on gold mining companies to 3%, other mining companies & upstream oil & gas companies from the previous pay 1%.
The House passed the Bill on Wednesday ,March 26.
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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.
He argued that Ghana had not sufficiently benefitted from its natural resource wealth. He pointed out that while natural resource rent accounts for about 14 percent of gross domestic product (GDP), revenue from the extractive sector contributes only 1.5 percent of GDP.
“We have failed to leverage our natural wealth by capturing its rent and channelling it toward productive infrastructure and human capital,” Dr. Forson said.
“Whereas global gold prices have seen some significant increase in recent times, Ghana has not been able to take full advantage of this development,” he added.
The Ghana Chamber of Mines, criticised the government’s approach, saying the industry was blindsided by the policy shift.
Sulemana Koney, Chief Executive Officer (CEO) of the Chamber, said that “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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“That is why I am somewhat concerned about the Growth & Sustainability Levy on the extractive industry increasing.
The Finance Minister justified the decision to increase the levy.
He argued that Ghana had not sufficiently benefitted from its natural resource wealth. He pointed out that while natural resource rent accounts for about 14 percent of gross domestic product (GDP), revenue from the extractive sector contributes only 1.5 percent of GDP.
