Deputy Finance Minister defends increase of Growth and Sustainability Levy
Kabah Atawoge March 12, 2025 Estimated reading time: 2 minutes
Thomas Ampem Nyarko, the Deputy Minister of Finance, has justified the government’s plan to raise the Growth and Sustainability Levy for mining enterprises.
This proposed change will increase the levy from 1 percent to 3 percent based on the gross output of mining companies, with the intention of enhancing the government’s revenue collection efforts.
Finance Minister Cassiel Ato Forson revealed this plan when he presented the 2025 budget to Parliament on Tuesday, March 11.
Additionally, the government aims to prolong the sunset clause associated with the levy until 2028, ensuring continued financial benefits from the mining industry over an extended timeline.
During a discussion on the Citi Breakfast Show on Wednesday, March 12, Ampem Nyarko further explained the reasoning behind this increase.
He noted that this slight rise in the levy is essential for the government to secure a fair portion of revenues from the mining sector, especially when global commodity prices are advantageous.
“This levy acts as a windfall tax. The minister clearly indicated that the economic rent generated amounts to about 14 percent, while we currently take only 1 percent, which is inadequate. For years, Ghanaians have expressed concerns regarding our ability to gain sufficient benefits from our extractive resources. Therefore, when global gold prices increase, it is only fair that we gain a bit more from that.”
He emphasized that the burden of this tax will not fall on the average Ghanaian but rather on the major mining corporations. Furthermore, he pointed out that the government has abolished the 1.5 percent withholding tax on smaller mining companies, creating an opportunity for the nation to benefit more from the substantial profits earned by larger mining firms.
