- PwC urges the government to reconsider the 3% increase in the mining sector levy
- PwC recommends strengthening mining royalties enforcement instead of raising the levy.
- PwC warns about temporary taxes becoming permanent
PricewaterhouseCoopers (PwC) has urged the government to rethink its proposed 3% increase in the Growth and Sustainability Levy, warning that this could impose a heavy burden on the mining industry.
While the government justifies the hike as a way to secure a fairer share of revenue from the mining sector, particularly when global commodity prices are high, PwC’s tax partner, Abeku Gyan-Quansah, argues that instead of raising the levy, the government should focus on better enforcing mining royalties.
He questioned, “Let’s take a step back—multiple tax rates aren’t ideal. This is essentially a production tax, and we already have royalties for this. Could we simply adjust the royalty rate instead?”
Gyan-Quansah also expressed concerns about the long-term nature of such levies, pointing out, “Historically, temporary taxes have remained in place for years. Since 2000, governments have introduced measures meant to be short-term, yet they have lasted much longer.”
The proposed levy increase is part of a broader plan to enhance government revenue and ensure the mining sector contributes more to national development. During the 2025 Budget presentation, Finance Minister Dr. Cassiel Ato Forson also suggested extending the levy’s sunset clause until 2028 to create a more stable and predictable framework.
PwC’s concerns add to the ongoing discussion about the sustainability and fairness of Ghana’s tax policies in the extractive industry, with stakeholders considering the potential effects on investment and economic growth.
