Accra, March 14,– Parliament on Friday, March 13, 2026, approved the Growth and Sustainability Levy, 2026, reducing the tax on mining companies’ gross production from three to one per cent.
The measure is intended to provide relief to mining firms following the implementation of the Minerals and Mining Royalties Regulation, which increases royalty payments when international commodity prices rise.
Mr Thomas Nyarko Ampem, Deputy Finance Minister, explained that under the sliding scale, mining firms would pay five per cent royalties if the price of gold reaches 1,900 dollars per ounce, six per cent if it surpasses 2,000 dollars, and 12 per cent when an ounce exceeds 4,500 dollars.
“The reduction in the Growth and Sustainability Levy is designed to offset windfall taxes during periods of high commodity prices,” he said.
However, Mr Alexander Afenyo-Markin, Minority Leader and Member of Parliament for Effutu, expressed reservations about the legislation, suggesting that the reduction from three to one per cent would not significantly improve mining firms’ financial position or their expenditure capacity.
Ghana’s sliding scale royalty system links royalty payments to prevailing global commodity prices. While intended to stabilise government revenue, critics argue that it can raise operational costs for mining companies during periods of high prices, potentially discouraging investment and affecting job security in the sector.
GHBUSS
14 March 2026
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