GHEITI urges Ghana to Scrap GSL to ease mining fiscal burden

The Ghana Extractive Industries Transparency Initiative (GHEITI) has called on the government to immediately scrap the Growth and Sustainability Levy (GSL), citing the need to reduce the fiscal burden on mining companies resulting from the new royalty regime.

Ghana, Africa’s largest gold producer, plans to replace its fixed 5% mineral royalty with a sliding scale of 5% to 12% linked to global bullion prices, in an effort to capture more revenue amid historic gold price highs.

In a statement issued on Friday, March 13, GHEITI urged the government and the mining industry to maintain ongoing dialogue on the proposed sliding-scale royalty to ensure operational sustainability and competitiveness.

“GHEITI recommends that both government and industry continue discussions and explore options for mutual accommodation, even as government pursues its revenue optimization agenda, without impairing operational sustainability and competitiveness of the mining industry,” the statement said.

It added that the complete withdrawal of the GSL should be considered urgently, to reduce the fiscal burden mining companies face under the new royalty framework.

GHEITI also suggested that the Minister for Lands and Natural Resources consider a reduced mineral royalty regime for small-scale miners. This it believes would encourage small-scale operators to enter the formal tax and royalty system while fostering a favorable business climate for indigenous mining enterprises.