The Ghana Chamber of Mines is calling for the complete elimination of the Growth and Sustainability Levy (GSL), citing sector pressures stemming from the current fiscal regime.
In a statement issued on April 20, 2026, the Chamber argued that while the government’s recent decision to reduce the levy from 3% to 1% is a step forward, it falls short of addressing deeper structural challenges within the tax regime governing the sector.
At the heart of the industry’s concern is the cumulative impact of multiple taxes applied to mining companies—particularly those calculated on gross revenue rather than profit. According to the Chamber, both the GSL and mineral royalties are “cost-insensitive,” meaning companies are taxed regardless of their operational costs or profitability.
This structure, the Chamber warns, disproportionately affects high-cost, mature, and marginal mines, where profit margins are already under pressure due to declining ore quality, rising input costs, and operational complexities.
“Reducing the levy to 1% is directionally positive, but it does not sufficiently ease the overall tax burden,” the statement noted, emphasizing that overlapping revenue-based taxes can create significant financial strain across the industry.
Ghana risks losing competitiveness if revenue-based taxes continue to pile up
Beyond immediate cost pressures, the Chamber raised broader concerns about Ghana’s position in the global mining landscape. It cautioned that maintaining multiple layers of revenue-based taxation could make the country less attractive to investors compared to competing mining jurisdictions.
Drawing on international experience, the Chamber argued that excessive taxation—particularly when not aligned with profitability—can discourage new investments, limit expansion projects, and ultimately shrink the revenue base governments seek to protect.
In this context, the Chamber framed its proposal not as a challenge to government revenue goals, but as part of a longer-term strategy to optimize fiscal returns.
“Eliminating the GSL should be seen as a necessary step toward creating a more balanced and sustainable tax regime,” the statement suggested, adding that a competitive fiscal environment is key to ensuring continued inflows of capital into the sector.
The mining industry remains a cornerstone of Ghana’s economy, contributing significantly to export earnings, employment, and public revenue. However, stakeholders say sustaining this contribution will depend on policies that strike the right balance between taxation and investment incentives.
The Chamber is therefore urging the government to move beyond incremental adjustments and pursue comprehensive reforms that align Ghana’s mining taxes with global best practices—ensuring the sector remains both profitable for operators and beneficial to the national economy.
By: Janice Opoku-Agyemang
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