Revise VAT on mineral exploration - Lands minister to next government

The Minister of Lands and Natural Resources, Samuel A. Jinapor, has called for bold tax reforms to boost exploration, solidify Ghana’s position as Africa’s top gold producer, and foster sustainable growth in the sector.

Speaking at the 10th Ghana Mining Industry Awards on Friday Mr Jinapor emphasised the importance of strong collaboration between the government and institu­tions to ensure the realisation of the full benefits of the country’s extractive resources.

“We have worked together, closely and in good faith, not only to overtake South Africa as the leading producer of gold on the continent, but we have con­sistently increased production, reaching some four million ounces last year," he said.

"And with preliminary reports for the first half of this year showing produc­tion in excess of two million ounces from both large and small-scale mining, there is no doubt that we will exceed four million ounces this year,” he dis­closed.

Mr Jinapor said the mining sector has remained the pillar of our national economy with consistent growth in ex­port receipts, adding, as of August last year, gold alone had contributed some $ 4.67 billion in export receipts.

For the first half of the year alone, export receipts from gold reached US $5 billion with a projection to exceed US$10 billion by the end of the year.

The Minister also called on the next government to prioritise the removal of Value Added Tax (VAT) on mining exploration to support the growth of Ghana’s mining sector.

“The issue of VAT on exploration is very dear to us all, and indeed to the Vice President, Dr Mahamudu Bawumia,” Mr Jinapor said.

“Exploration drives the industry, and we must incentivise it. Unfortunately, we could not finalise a review of this tax during my tenure, but I strongly recommend that the next government prioritises this matter.”

He disclosed that during his tenure, the Ministry engaged stakeholders, in­cluding the Ghana Chamber of Mines, to address the tax burden but could not conclude discussions due to challenges in Parliament.

In an interview with Asaase News on the sidelines of the awards ceremony, the Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, commended the Minister for his collaborative leadership, highlighting the Chamber’s achievements under his tenure.

Koney lauded the ongoing expansion of local procurement policies, which have retained US$3 billion annually within Ghana’s economy.

The awards event, themed “A decade of rewarding excellence in the mining sector,” celebrated outstanding con­tributions to innovation, safety, and sustainable practices within the industry.