Parliament cuts gold mining tax from 3% to 1%

Parliament has passed legislation reducing the tax burden on gold mining companies, cutting the Growth and Sustainability Levy on gross production from 3 percent to 1 percent, a move the government says is designed to offset the impact of new royalty regulations introduced in 2025.

The Growth and Sustainability Levy (Amendment) Bill, 2026) comes on the heels of the Minerals and Mining Royalty Regulations, 2025, which established a sliding-scale royalty framework that allows the state to earn higher returns when international gold prices rise.

The government argues the tax reduction is necessary to cushion mining firms from the additional financial pressure the new royalty regime imposes.

Deputy Finance Minister Thomas Nyarko Ampem defended the amendment, framing it as a step towards ensuring Ghana finally derives maximum benefit from its abundant gold resources.

"Over the years, we haven't taken enough advantage of this resource. This arrangement will make it fair to mining companies, and it will also make it fair to Ghanaians who are the owners of this natural resource," he told Parliament.

However, the passage of the bill has not been without controversy.

The Minority Caucus pushed back strongly, warning that the new royalty regulations, far from boosting the sector, could cost Ghana up to one million jobs and dampen investor appetite for the country's mining industry.

ID/AE

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