Ghana losing mining investment over 'punitive' tax regime - Minority caucus
Alexander Afenyo-Markin, Minority Leader, warned that Ghana is losing mining investment due to what he describes as an uncompetitive and unstable tax regime. He said, "The consequence is capital flight: Investment decisions that should be made in Ghana are being taken elsewhere, in jurisdictions with more stable and competitive fiscal regimes." He also raised alarm over the proposed reduction of mining lease tenure from thirty years to fifteen.
The Minority Caucus engaged with the Ghana Employers' Association on March 31, where industry leaders raised concerns about fiscal and regulatory pressures. Mr. Afenyo-Markin stated that the cumulative burden of royalties, corporate income tax, growth and sustainability levies, dividends and ancillary charges has produced an effective tax rate that is among the highest of any comparable mining jurisdiction. He also criticized the government for sidelining industry players in policymaking, saying, "Consultation that takes place after a decision has already been made is not consultation." The Minority also flagged concerns about the use of artificial intelligence in customs assessments at the ports, noting that specific cases were raised in which customs assessments generated by the AI system bore no rational relationship to actual transaction values.
The Minority Caucus has pledged to escalate the issues in Parliament and push for reforms. They will oppose any legislative change that reduces investment security in the sector without commensurate benefit to Ghana.
Quick Summary
The Minority Caucus is raising concerns that Ghana's mining sector is becoming unattractive to investors. They cite an unstable tax regime - hinting at potential economic consequences.
Summary - read the full story for complete context.
Image: MyJoyOnline
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from MyJoyOnline
Related Stories
More from Business & Economy
SWIM appoints Evans Kyere-Mensah as Global Agritech, Climate Innovation Advisor
SWIM tapped a new advisor to help youth explore climate-smart agriculture. What does this mean for the future?
4d ago•
