Mining Sector to witness 3 percent increase in Growth & Sustainability Levy

The Ghanaian government has announced plans to increase the Growth & Sustainability Levy on mining companies from 1% to 3% of their gross production. This decision is aimed at ensuring the country gains a fair share of the benefits from soaring global gold prices.

The proposed hike is part of broader fiscal measures designed to enhance national revenue and bolster the mining sector’s contribution to Ghana’s economic development.

Presenting the 2025 Budget to Parliament, Finance Minister Dr. Cassiel Ato Forson revealed that the government also intends to extend the levy’s sunset clause until 2028, ensuring a more predictable and stable framework for its implementation.

“Consequently, we are proposing to increase the Growth & Sustainability Levy from 1% to 3% on the gross production of mining companies to enable the nation to have its fair share of the windfall from rising gold prices. We also propose to extend the sunset clause to 2028,” Dr. Forson stated.

The move comes at a time when global gold prices are experiencing significant growth due to inflationary pressures and geopolitical uncertainties. The government sees this as an opportunity to maximize economic benefits from the mining sector.

While mining companies may face higher operational costs, the government argues that the levy adjustment is necessary for sustainable national development.

Strategic Implications

The extension of the sunset clause is expected to provide greater stability for mining companies by mitigating uncertainty associated with sudden tax changes. This will allow industry players ample time to adapt while giving the government room to implement long-term economic strategies.

By increasing the levy, Ghana seeks to leverage its natural resources for national development, with revenues expected to be channeled into infrastructure projects and human capital investment.