Chamber of Mines disputes claims Ghana’s mining sector is undertaxed

The Ghana Chamber of Mines has rejected claims that Ghana’s mining sector is undertaxed, insisting instead that the country applies one of the highest fiscal burdens on mining companies globally.

The Chamber’s response comes after the Institute of Economic Affairs (IEA) suggested that Ghana’s mining framework is largely royalty-based and questioned recent changes to the Growth and Sustainability Levy (GSL).

In a statement issued on April 20, 2026, the Chamber argued that Ghana’s mining fiscal regime generates an effective tax rate of about 60 per cent under current assumptions.

It explained that Ghana operates a combined royalty–tax system rather than a purely royalty-based model, with multiple layers of taxation applied across revenue, profits and dividends.

These include mineral royalties ranging from 5 to 12 per cent, a 1 per cent Growth and Sustainability Levy on mineral revenue, a 35 per cent corporate income tax, and government earnings through dividends from its free carried interest in mining operations.

According to the Chamber, these fiscal instruments ensure that the state benefits at various stages of mineral production, regardless of whether mining companies are profitable.

However, it cautioned that the cumulative impact of these charges places significant pressure on mining operations, particularly high-cost and marginal mines, since several levies are applied on gross revenue rather than profit.

The Chamber further noted that although the reduction of the GSL from 3 per cent to 1 per cent was a positive step, it does not substantially reduce the overall tax burden on the sector.

It therefore urged government to adopt a more balanced fiscal approach that ensures short-term revenue needs are met while safeguarding the long-term viability and competitiveness of the mining industry.