WACAM wants mining windfall profit taxed

Accra, April 22, GNA - The Wassa Association of Communities Affected by Mining (WACAM), on Tuesday appealed to the government to initiate a proposal for parliament to pass a law on "Mining Windfall Profit Tax," to be used for developmental.

There is currently a mining boom with gold price hitting 1000 dollars per ounce but that is not taxable because such gains are not included in the tax law.

Mr Daniel Owusu-Koranteng, Executive Director of WACAM, made these known in an interview with the Ghana News Agency on Tuesday in Accra. He said because drafters of the Minerals and Mining Law did not anticipate that gold price could hit 1000 per once, they did not include that in the tax law, making gains beyond that level non-taxable. Mr Owusu-Koranteng said high gold prices on the international market had given a windfall profit to mining companies as their production cost was below 300 dollars per ounce. He said the companies gained at the expense of the country because those gains, which were not negotiated before commencement of prospecting, were not attracting tax.

Mr Owusu-Koranteng said in future, all mining agreements including oil and other minerals should cover windfall profit tax.