Parliament approves growth and sustainability levy reduction for mining firms

Parliament has passed the Growth and Sustainability Levy (GSL), 2026, reducing the tax on mining companies’ gross production from three percent to one percent. The move aims to cushion mining firms amid the implementation of the Minerals and Mining Royalties Regulation, which increases royalties for mining companies when commodity prices rise on the international market.

Deputy Finance Minister Thomas Nyarko Ampem explained that the reduction is intended to address windfall taxes. He noted that under the sliding-scale royalty system:

• When gold reaches $1,900 per ounce, mining firms pay 5% royalties.




• When gold exceeds $2,000 per ounce, royalties rise to 6%.




• When gold surpasses $4,500 per ounce, royalties jump to 12%.

The GSL reduction, he said, provides relief to mining firms facing higher royalty payments during periods of rising gold prices.

However, Minority Leader and MP for Effutu, Alexander Afenyo-Markin, suggested that Parliament should have delayed passage of the legislation, arguing that lowering the levy from three to one percent may not have a meaningful positive impact on mining companies’ finances or operational expenditure.

Ghana’s sliding-scale royalty system ties royalty payments directly to prevailing commodity prices. While it aims to stabilize government revenue, critics contend that higher royalties during periods of strong global prices increase operational costs for mining firms, potentially discouraging investment and affecting job security in the sector.