Chamber of Mines: 60% Tax Rate Risks Killing Investment (Ghana Urged to Review Mining Levies!)
The Ghana Chamber of Mines has raised the alarm about Ghana’s rising tax burden, saying that the country’s average effective tax rate, which is close to 60%, could stop future domestic and foreign investment in the mining sector. Kenneth Ashigbey, the Chief Executive Officer, said that the total burden, which includes a 5% royalty, a 3% Growth and Sustainability Levy that can’t be deducted, a 10% government free-carry interest, a 35% corporate income tax, and an 8% withholding tax, is much higher than in other countries and doesn’t leave much room for reinvestment in operations. He said that keeping rates this high could slow down exploration, lead to mine closures before they are ready, and ultimately lower the state’s long-term revenue. The Chamber asked the government to adopt a more balanced fiscal framework that is in line with global standards. This would bring in new investment, keep current operations going, and ensure long-term economic benefits for Ghana.
