Parliament Cuts Mining Levy to 1% (Sliding-Scale Royalties Rise with Gold Prices Under New Law)
The Growth and Sustainability Levy, 2026, was passed by Parliament on March 13. It lowers the tax on mining companies’ gross production from three percent to one percent to help the industry after the Minerals and Mining Royalties Regulation was put in place. This regulation raises royalty payments when commodity prices rise on the international market. Thomas Nyarko Ampem, the Deputy Finance Minister, said that under the new royalty system, mining companies will pay five percent royalties when gold reaches $1,900 per ounce, six percent when it goes over $2,000, and up to 12 percent when prices go over $4,500. He also said that the lower levy would help make up for windfall taxes. Minority Leader and Effutu MP Alexander Afenyo-Markin, on the other hand, told the government to wait before passing the law, saying that lowering the levy would not make mining companies’ finances or spending much better. Ghana’s sliding scale royalty system ties royalty payments to current commodity prices. This means that companies pay higher royalties when gold prices go up and lower royalties when prices go down. The system is meant to keep government revenue stable, but it has been criticized for possibly raising costs, discouraging investment, and threatening jobs when global prices are high.
