Ghana Chamber of Mines Calls for Repeal of Growth and Sustainability Levy

The Ghana Chamber of Mines has renewed its call for the immediate repeal of the Growth and Sustainability Levy (GSL), describing it as a major impediment to the long-term viability of the country’s mining sector.

According to the Chamber’s Chief Executive Officer, Ing. Kenneth Ashigbey, the 3% levy on gross production places an undue burden on mining firms by taxing revenue regardless of profitability.

“The challenge with some of the taxes within our sector is that the taxes are fixed at the gross level. By the time you start your production, whether you are making losses or not, you need a 3% to stake it. It becomes regressive, and the ideal way of taxation is taxing out of the returns that happen,” Ing. Ashigbey explained.

Unlike standard corporate taxes that apply to net income, the GSL is charged on gross revenue, meaning mining companies must pay the levy from day one of production. Industry experts warn that this approach discourages reinvestment, potentially limiting mine expansions and the development of new projects.

A primary concern is the non-deductible nature of the GSL and mineral royalties. “When taxes are fixed at the gross level, they divert into conservation the operating cost,” Ing. Ashigbey said, adding that this structure creates a “loss-making trap” for marginal mines.

The Chamber advocates for a more progressive tax system tied to net returns, arguing that such a framework would allow companies to reinvest in operations, safety, and exploration while ensuring the state still benefits from profitable ventures.

Currently, mining companies in Ghana face a 3% GSL, a 5% royalty on gross revenue, 35% corporate income tax, and a 10% free-carried interest for the state, making Ghana one of the costliest countries in the world to mine gold and other minerals.

“The more profit you make, the more that you pay. This ensures a fair distribution of value and protects companies during lean periods or high-cost cycles,” Ing. Ashigbey said.

The Chamber cautioned that maintaining the GSL risks disinvestment, as international mining firms could shift exploration budgets to more tax-friendly jurisdictions. It urged the government to engage in “meaningful consultation” to create a tax framework that balances national revenue needs with the sustainability and competitiveness of the mining sector.

“Scrapping the Growth and Sustainability Levy would provide immediate liquidity to mining firms, allowing them to reinvest in local communities and modernize their operations,” Ing. Ashigbey concluded.

By moving to a net-based, progressive taxation model, Ghana could secure revenue while maintaining its attractiveness as a destination for global mining investment.