The Ghana Extractive Industries Transparency Initiative (GHEITI) has called on the government and the mining industry to engage in continued dialogue to ensure that Ghana’s new mineral royalty regime balances revenue generation with industry competitiveness.
In a press statement issued on Friday, March 13, Dr Steve Manteaw, Co-Chair of GHEITI, recommended that the government consider the complete withdrawal of the Growth and Sustainability Levy (GSL), noting that its continued application alongside the new royalty regime could raise the fiscal burden on gross production to unprecedented levels, threatening investment stability.
GHEITI also urged the introduction of a reduced mineral royalty rate for small-scale miners, to encourage their formal participation in the tax system while fostering a favourable business environment for indigenous enterprises.
“GHEITI recommends that both government and industry continue dialoguing and exploring options for mutual accommodation, even as the government pursues its revenue optimisation agenda, without impairing operational sustainability and competitiveness of the mining industry.
“Government should consider, as a matter of urgency, the complete withdrawal of the GSL to reduce the fiscal burden mining companies carry as a result of the new royalty regime,” the statement said.
The GHEITI further encouraged both government and industry to explore mutually acceptable solutions regarding the design of the royalty bands, particularly the transition thresholds, to optimise government revenue without compromising the operational sustainability of mining companies.
GHEITI emphasised that fiscal predictability, rather than the new royalty rates themselves, is crucial for maintaining Ghana’s attractiveness to investors and for long-term planning in the mining sector.
