Business News of 2014-01-25

Gov’t confirms suspension of windfall tax

The finance ministry says government is yet to take a final decision on implementing the windfall tax.

This follows recent reports that President John Mahama has announced the suspension of the tax.

Tax Policy Advisor at Ministry of Finance, Dr. Edward Larbi Siaw says government is awaiting recommendations from a committee reviewing the tax to consider the way forward.

He, however, maintains that the tax would not be implemented this year.

Meanwhile, mining firms say suspension of the windfall tax could greatly enhance their operations and profits.

The firms have had difficulties in attracting additional capital for their operations as well as decline in their stock prices because of moves to introduce the tax.

The companies have told Joy Business the suspension could not have come at a good time, as they are currently struggling because of declining gold prices.

Dr. Toni Aubynn, Chief Executive of Ghana Chamber of Mines, charged mining companies to “take advantage of this situation”, adding that it would have “positive effect on decision to bring in more money to Ghana”.

The suspension could see the gold companies also put on hold plans to lay off more of their workers, because of declining gold prices.