By Nadia Ntiamoah
The Ghana Chamber of Mines Ghana Chamber of Mines has intensified calls for the complete removal of the Growth and Sustainability Levy (GSL) on mining companies, warning that the current tax structure is exerting unsustainable pressure on the sector.
In a statement issued in Accra, the Chamber acknowledged government’s recent decision to reduce the levy from 3 percent to 1 percent but argued that the move falls short of addressing the broader fiscal challenges confronting mining firms.
According to the Chamber, the existing tax regime—particularly the combination of the GSL and mineral royalties—places a heavy burden on operators because both taxes are applied on gross revenue rather than profit. This, it explained, makes them cost-insensitive and disproportionately affects high-cost, mature, and marginal mining operations.
The Chamber cautioned that maintaining overlapping revenue-based taxes could undermine the competitiveness in the global mining landscape. It stressed that international experience shows that excessive taxation of this nature can discourage investment, reduce operational efficiency, and ultimately lead to lower government revenue over time.
While describing the reduction of the levy as a step in the right direction, the Chamber maintained that more decisive reforms are needed to ensure the long-term sustainability of the industry. It emphasized that the adjustment should be seen as part of a broader fiscal optimisation effort rather than a compromise on government revenue objectives.
The industry body is therefore urging government to go further by eliminating the 1 percent levy entirely, arguing that such a move would help attract investment, support struggling operations, and strengthen Ghana’s position as a competitive mining destination.
The call comes at a time when the mining sector remains a key pillar of the economy, contributing significantly to export earnings and government revenue, but also facing rising operational costs and global market pressures.
