Former Deputy Finance Minister, Mona Quartey, has expressed concerns over the government’s decision to raise the Growth & Sustainability Levy on mining companies from 1% to 3%, warning of its potential impact on the extractive sector.
During the presentation of the 2025 Budget Statement, Finance Minister Dr. Cassiel Ato Forson justified the levy hike as a strategy 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, Mona Quartey acknowledged the need for revenue generation but cautioned that the increased levy could place undue pressure on the industry at a critical time.
According to her, while the measure may help in the short term, it should not be prolonged, as the extractive sector plays a crucial role in Ghana’s economic recovery.
“In 2024, we saw the extractive and oil industry coming in strongly in terms of production, which is not only held by price but it is held by the cost of production. So, utilities, people, the consumables that are bought in that space.
“That is why I will say right now that I am a little concerned about the Growth and Sustainability Tax on the extractive industry going up.
“I wish that would be the case, but in the context that right now, our major source of funding will be from the tax refund account, and trying to navigate the space to make some money, maybe that may be a measure that will come in, but not for long.
“Because that sector or industry is one that will help this nation to come out of its debt, and it is because they bring in the foreign currency,” she stated.
Source: Citinewsroom