The Ghana Chamber of Mines has urged the government to reconsider the recent increase in the Growth and Sustainability Levy from 1% to 3% ahead of the upcoming mid-year budget review.

According to the Chamber, the current rate poses a significant challenge for some mining companies, particularly smaller operators that generate less revenue compared to their larger counterparts.

This disparity makes it difficult for them to meet the 3% levy requirement, which could potentially hinder their operations and growth.

Speaking at a press briefing in Accra, Dr. Kenneth Ashigbey, the Chief Executive Officer of the Chamber, emphasized the need for the government to review the levy rate to bring stability to the mining sector and encourage further investment.

"We hope that the Growth and Sustainability Levy would be reduced in the mid-year budget," he said.

"The macro-economy is pointing in the right direction, and the strength of the Cedi is predominantly based on gold."

Dr. Ashigbey highlighted the significant contribution of the mining sector to the country's economy, particularly through the domestic gold purchase program.

"Last year, we sold 358,218 ounces of gold to the Bank of Ghana, and we continue to support the bank through the Voluntary Forex and Gold Purchase Initiative, which has helped boost the country's reserves and strengthen the Cedi," he said.

The Chamber's call for a reduction in the levy rate is aimed at promoting the sustainability of the mining sector and encouraging further investment in the industry.

Dr. Ashigbey emphasized the importance of recognizing the mining sector's contribution to the economy and urged policymakers to consider its sustainability in future decisions.

By reducing the levy rate, the government can create a more favorable business environment for mining companies, which would ultimately benefit the country's economy.

The Chamber's plea is expected to be considered in the upcoming mid-year budget review, and it remains to be seen whether the government will heed the call to reduce the Growth and Sustainability Levy.

However, the Chamber's advocacy highlights the need for a balanced approach to taxation and revenue generation, one that takes into account the needs and challenges of different industries, including the mining sector.

Sompaonline.com