Chamber of Mines rejects claims of under-taxation in Ghana's mining sector

The Ghana Chamber of Mines has quashed claims that the country’s mining sector is undertaxed.

According to the Chamber, Ghana imposes one of the highest fiscal burdens on mining companies globally.

This response follows recent assertions by the Institute of Economic Affairs (IEA), which described Ghana’s framework as royalty-based and questioned recent adjustments to the Growth and Sustainability Levy (GSL).

In a statement issued on April 20, 2026, the Chamber explained that Ghana’s current mining fiscal regime yields an effective tax rate of about 60 percent under prevailing assumptions.

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It clarified that Ghana operates a royalty–tax regime, not a royalty-only model, with several fiscal instruments applied across revenue, profits, and dividends.

These include mineral royalties ranging from 5 to 12 percent, a 1 percent GSL on mineral revenue, a 35 percent corporate income tax, and state participation through dividends from free carried interest.

According to the Chamber, these instruments collectively ensure that government captures value at different stages of the mining value chain, irrespective of profitability.

It warned, however, that the cumulative effect of these taxes is placing pressure on mining operations, particularly high-cost and marginal mines, since several levies are applied on gross revenue and are not sensitive to operational costs.

The Chamber also noted that while the adjustment of the GSL from 3 percent to 1 percent was directionally appropriate, it remains inadequate to offset the overall fiscal burden.

It therefore urged government to structure the fiscal regime in a way that balances short-term revenue mobilization with the long-term sustainability of the mining sector.

SO/SA

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