The Chief Executive Officer of the Chamber of Mines, Suleiman Koney, says his outfit is disappointed in the “nuisance tax” that has encircled the mining industry in Ghana. He has therefore called on the government to take urgent action to address the issue before it collapsed the mining industry completely.
Mr. Koney was speaking with ghananewsonline.com.gh on the sidelines of a recent tour of the Newmont Ahafo Mines by Journalists for Business Advocacy (JBA) – a group of journalists specialized in advocating for enhanced environment for businesses.
He is particularly saddened by the 17.5% tax on exploration activities and wished that the 2018 budget which is expected to be read to Parliament on November 15 will scrap it off.
“The company is now going to see if it will find any minerals, and in mining, the success rate of finding minerals is only about 10 percent. It is a high risk area so it is important that we consider the environment in which it operates. Asking them to pay taxes before they start work is quite punitive,” he stated.
In 2016, the mining sector contributed some 16 percent of Ghana’s total GDP, amounting to about GHS 1.64billion. A total of GHS696.67 was paid in corporate taxes in the same year.
Ghana is no more competitive for exploration, compared to other West African countries like Ivory Coast, Mali and Burkina Faso among others.
According to him, “there is so much competition and you don’t want to make your industry uncompetitive. So the thing to do is to look at the whole value chain and see how best we can do better. The focus should not be on taxation because its scares investors.
Source: Jeorge Wilson Kingson || ghananewsonline.com.gh