A former Deputy Finance Minister, Mona Quartey, has criticized the government’s decision to increase the Growth and Sustainability Levy on mining companies from 1% to 3%. She warned that this decision could have serious consequences for the extractive sector.
During the presentation of the 2025 Budget Statement, Finance Minister Dr. Cassiel Ato Forson defended the levy increase as a strategy to ensure that Ghana benefits from rising global gold prices. He also proposed extending the sunset clause for the levy to 2028.
Disagreement
But, speaking on The Big Issue on Channel One TV on Saturday, March 15, Quartey, a member of the National Democratic Congress (NDC), acknowledged the need for revenue generation.
However, she cautioned that the increased levy could exert undue pressure on the industry at a critical time.
She stated, “In 2024, we saw the extractive and oil industries performing well in terms of production, which is influenced not only by prices but also by the cost of production. This includes utilities, labor, and the consumables that are necessary in that sector.
“Therefore, I am concerned about the increase in the Growth and Sustainability Tax on the extractive industry. While I understand that there is a need to generate revenue, we must consider that our major source of funding will currently come from the tax refund account. Navigating this space to generate more revenue may be a temporary measure, but it should not be long-term.
“The extractive sector plays a crucial role in helping our nation recover from its debt because it brings in foreign currency,” she emphasized.
