ACEP criticises proposed mining levy hike

The Africa Centre for Energy Policy (ACEP) has expressed strong opposition to the Ghanaian government's proposal to increase the mining levy from 3% to 5%. ACEP argues that this hike could have detrimental effects on the mining sector and broader economy, especially during a time when many industries are grappling with economic challenges. The organization emphasized that such an increase may deter foreign investment and hinder the growth of local mining enterprises. Furthermore, ACEP highlighted concerns regarding how additional funds generated from the levy would be utilized, urging transparency and accountability in government spending. They advocate for a more comprehensive approach to reforming the mining sector rather than imposing higher taxes, suggesting that enhancing regulatory frameworks and addressing operational inefficiencies could yield better outcomes. This criticism comes amidst ongoing discussions about sustainable revenue generation in Ghana's resource-rich sectors, raising important questions about balancing fiscal policies with the need to foster a competitive business environment. ACEP’s stance reflects broader anxieties within the industry regarding economic stability and investment attractiveness in Ghana's mining landscape.