by Ghana Eye Report
The Minority in Parliament on Monday warned of dire economic consequences in the mining sector following the introduction of a 2% sustainability levy on gross mining volumes and the enactment of a GOLDBOD Act in the last three months, this is according to a statement released here.
The minority argue the introduction of two tax measures – the imposition of an additional 2% growth and sustainability levy on gross mining volumes and the imposition of a new growth and sustainability levy from 2026 to 2028 as well as the enactment of the GOLDBOD ACT has put undue financial stress on investors and preventing foreign investors in gold trading and export.
According to the minority, the actions have generated high levels of discomfort among the investor community and have the potential to erode the gains Ghana has made in attracting foreign direct investment into the economy and the mining sector.
“The government, through its 2025 revenue policies, introduced two tax measures that have negatively impacted the industry. The combined effect of these royalty-like levies has pushed several mines already in distress into graver financial difficulties. It has further created an uneven financial burden in the sector for companies mining other minerals that have not experienced a price boom,” said the statement.
“Following these levy increases, the government secondly announced the enactment of the GOLDBOD ACT, which among other things proscribes the participation of foreign investors in gold trading and export,” added the statement.
According to the Minority, section 78(4) of the GOLDBOD ACT appears to be in breach of Article 107 (b) of the 1992 Constitution of the Republic of Ghana, which retrospectively takes away rights that have accrued to foreign investors who operate in the gold trading industry.
The group also expressed concern over decision by the government to reject application to renew a mining lease by Goldfields Ghana Limited, a policy to defund 80% of the inflows into the Minerals Income Investment Fund (MIIF) instead of investing in new concessions, the government’s disquiet over an attack on a mine that led to the death of eight persons, as well as the decision to abolish community mining schemes.
The Minority Caucus has therefore urged the government to renew lease renewal applications, introduce fiscal incentives to the mining industry to stimulate further investments, and refrain from rhetoric that encourage attacks on mines and dislike for the investor community.
It also called on the government to engage investors in the mining industry to fulfil key obligations, as well as develop a transparent framework for the transition of local Ghanaian companies from small-scale to medium and large-scale gold production. Enditem
Source: Ghana Eye Report
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