Former Deputy Finance Minister, Mona Quartey, has raised concerns over the government’s decision to increase the Growth & Sustainability Levy on mining companies from 1% to 3%, cautioning that the move could strain the extractive sector.
The levy hike, announced by Finance Minister Dr. Cassiel Ato Forson in the 2025 Budget Statement, is aimed at maximizing Ghana’s gains from rising global gold prices. Additionally, the government plans to extend the levy’s sunset clause to 2028.
Speaking on The Big Issue on Channel One TV, Quartey acknowledged the government’s need for revenue but warned that increased taxation on the extractive industry could have unintended consequences. She stressed that the sector is not only influenced by gold prices but also by production costs, including utilities, labor, and consumables.
“In 2024, the extractive and oil industries showed strong production growth, but this is dependent on both prices and production costs,” she noted. “Raising the levy now might generate revenue in the short term, but it should not be prolonged, as the sector is key to Ghana’s economic recovery.”
Quartey emphasized the importance of the extractive sector in helping Ghana reduce its debt burden, highlighting its role in bringing in foreign currency. She urged the government to consider a balanced approach to taxation that supports economic stability without discouraging investment in the industry.
