The Ghana Chamber of Mines has cautioned that the country’s mining tax regime may be placing too much pressure on companies and could weaken Ghana’s ability to attract new investment into the sector.
In a statement issued on April 20, 2026, the Chamber argued that Ghana’s mining industry is already among the most heavily taxed in the world, with an effective tax rate of nearly 60 per cent under current conditions.
The Chamber was responding to claims by the Institute of Economic Affairs that the mining sector is undertaxed and that Ghana largely relies on royalties from mining firms.
However, the Chamber said Ghana’s fiscal system goes beyond royalties and includes several taxes and charges applied at different stages of mining operations.
These include mineral royalties of between five and 12 per cent, a one per cent Growth and Sustainability Levy on mineral revenue, a 35 per cent corporate income tax, and dividend payments to the state through its free carried interest.
According to the Chamber, many of these taxes are charged on gross revenue rather than profit, meaning mining firms must pay them even when operational costs are high or profits are low.
It warned that this could create challenges for high-cost and marginal mines, making it harder for some operations to remain viable.
The Chamber also argued that although the recent reduction of the Growth and Sustainability Levy from three per cent to one per cent was a positive move, it was not enough to significantly reduce the overall tax burden on mining companies.
It called on the government to review the current fiscal structure and create a better balance between raising revenue and keeping the mining sector competitive.
According to the Chamber, maintaining a stable and predictable tax environment is essential for attracting long-term investment into the mining industry.
