Ghana Chamber of Mines lauds government for scrapping VAT on exploration activities

The Chief Executive Officer of the Ghana Chamber of Mines, Ing Dr Ken Ashigbey, has applauded government for announcing the removal of Value Added Tax (VAT) on mineral exploration and prospecting activities—an intervention the mining industry has advocated for over two decades.

He described the policy shift as “a very positive sign” that will boost investor confidence and position Ghana as a competitive destination for

mining exploration.

According to him, imposing VAT on exploration had long discouraged potential investors.

He explained that companies that brought in about US$100 million for exploration ended up with less than US$80 million to carry out actual field activities after paying VAT—an arrangement he said weakened Ghana’s attractiveness in the global mining market.

“Exploration and prospecting are the future of every mine. If we want our mining industry to have a long lifespan, then we must remove barriers that frustrate exploration,” he stated.

Speaking to the media in Tarkwa, Dr Ashigbey commended President John Dramani Mahama, the Minister of Finance, and the Minister of Lands and Natural Resources for heeding the industry’s long-standing concerns and finally taking action.

With the scrapping of VAT on exploration, he believes more international mining companies will now enter the Ghanaian market—not only to explore known minerals such as gold, bauxite, and manganese, but also to search for critical rare-earth minerals whose availability in Ghana is yet to be fully determined.

He emphasised that increased exploration will open new opportunities for the country and help sustain the mining industry’s contribution to national revenue.

Dr Ashigbey revealed that the large-scale mining sector contributed GH¢17.7 billion to Ghana’s economy in the previous year alone.

The Chamber CEO assured that industry stakeholders will continue to engage government on other policy areas to ensure that mining remains a strong pillar of economic growth.

“We are grateful to government for this particular initiative, and we will

continue discussions to ensure that the sector remains vibrant and beneficial to the nation,” he added.