Former Deputy Finance Minister Mona Quartey has raised concerns over the government’s decision to increase the Growth and Sustainability Levy on mining companies from 1% to 3%, warning that the move could place undue strain on the extractive sector.
During the presentation of the 2025 Budget Statement, Finance Minister Dr. Cassiel Ato Forson defended the levy hike as a means to ensure Ghana benefits from rising global gold prices. He also proposed extending the sunset clause to 2028.
Speaking on The Big Issue on Channel One TV, Quartey acknowledged the government’s need for revenue but cautioned that increasing the levy at this time could negatively impact the sector, which plays a crucial role in Ghana’s economic recovery.
“In 2024, we saw the extractive and oil industry performing strongly, not just due to price factors but also because of production costs, including utilities, labour, and consumables,” she explained. “That’s why I’m concerned about raising the Growth and Sustainability Levy on the extractive sector.”
She emphasized that while the measure might generate short-term revenue, it should not be prolonged. Quartey stressed that the mining sector is a key driver of Ghana’s economic stability, contributing significant foreign currency inflows that are essential for managing the country’s debt.
“Our major source of funding now is the tax refund account, and while the government is trying to navigate fiscal challenges, this levy should be a temporary measure,” she added.
Her remarks highlight the ongoing debate over balancing revenue generation with maintaining a competitive and thriving extractive industry in Ghana.
Source: ghextractives.com