Though gold prices are soaring in the world market, mining companies are not doing well due to the high taxes being charged by the government, says the president the Ghana Chamber of Mines, Dr Tony Aubyn, who complained that this was not healthy for the operations of mining in Ghana.
Dr. Aubyn has called, therefore, on the government to rethink the regular taxes being levied on mining companies in the country, or else there are risks of it losing its reputation as the preferred destination for foreign mining. He lamented that the cost of doing business in the country had become expensive for mining companies and called for a reduction of the excessive taxation.
The royalty rate has upped from three per cent to five per cent; and there have increases in windfall tax. Capital allowance has also been increased to 20% as well as corporate tax from 25 per cent to 35 per cent.
These increments, according the Chamber of Mines boss, had accounted for the high operating cost of the companies, thereby reducing the benefits communities stand to gain from the mining companies.
“The cost of feasibility study, ground rent, uncertainty of resources, tax revenue, and royalties, all take a chunk of the profits derived. Therefore, when the government imposes so many taxes, it cripples the companies and drives them out”, Mr Aubyn stated.