Business in Ghana

We Understand the issues that make the News

Archive for December 17th, 2011

Ghanas Mining Taxes: Are they New and Adequate?

Posted by Business in Ghana on December 17, 2011

By Alhassan Atta-Quayson, Third World Network  Africa

Ghanas 2012 National Budget Statement and Economic Policy proposed, among others, to bring the following changes to mining operations in the country: increase corporate tax rate from 25% to 35%; install a windfall tax of 10%; and implement a uniform regime for capital allowance of 20% for five years. It also sought to review the principle of ring-fencing to prevent companies undertaking a series of projects from deducting costs from new projects against profitable ventures yielding taxable income. This was commended by the National Coalition on Mining and the Ghana Mineworkers Union as part of steps urgently needed to improve the contribution of the sector to the economy and people of Ghana. However the Chamber of Mines have gone on the offensive, indicating that the mining sector is already over-taxed and such initiatives are only inimical to their operations. But are these taxes really new as the industry would want Ghanaians to believe and more importantly adequate in ensuring equitable distribution of Ghanas mineral wealth? I offer my opinion Read the rest of this entry »

Advertisements

Posted in Trade and Industry, Uncategorized | Tagged: , , , | 1 Comment »