Mining firms must pay fair share – Finance Minister defends increased tax rate

The Minister for Finance, Dr. Cassiel Ato Forson, defended the tax increase on mining companies in the 2025 Budget Statement. He called it a necessary step for national development.

Dr. Forson noted that the Growth and Sustainability Levy on mining firms will rise from 1% to 3%. This adjustment reflects the significant profits of companies in Ghana’s mining sector.

Gold mining companies will also face higher taxes on super-normal profits. This measure aims to ensure fair benefits from the country’s natural resources.

In a statement on April 3, Dr. Forson said, “Mining companies make significant profits. It is only right they contribute more to national development.”

He added that the government’s economic reforms seek long-term financial stability. These reforms aim to ease burdens on ordinary Ghanaians.

“This is about resetting Ghana’s economy for long-term stability and prosperity,” he stated. “We are putting money back into Ghanaians' pockets while keeping government finances strong.”

Dr. Forson highlighted several benefits from newly signed bills by President John Dramani Mahama. These bills aim to provide financial relief, foster growth, and promote fiscal discipline.

One key change is repealing the Electronic Transfer Levy (E-Levy), which has faced criticism since its introduction.

Other tax relief measures include removing taxes on lottery and betting winnings. This allows Ghanaians to keep their full earnings.

Additionally, the government has eliminated taxes on unprocessed gold exports. This encourages legal trading and helps reduce smuggling.

A VAT exemption on motor insurance has also been introduced. This is expected to lower transport costs for drivers and vehicle owners nationwide.

Dr. Forson revealed that GHS 3.8 billion will be redirected to critical social programs by adjusting the tax refund ceiling.

These funds will support initiatives like free sanitary pads for schoolgirls and the school feeding program.

They will also benefit the capitation grant and LEAP program for vulnerable households.

“We are investing in areas that directly impact citizens’ lives,” concluded the Finance Minister.