12 September 2012, Sweetcrude, ACCRA – GHANA has delayed implementing a windfall tax on mining profits while it considers whether to scrap the proposed levy, the head of the country’s mining regulator has said.
The West African nation, the continent’s second-largest source of gold, proposed the 10 percent windfall tax on mining companies’ profits in its 2012 budget as part of measures to boost income to state coffers, Reuters reports.
The government also raised the corporate tax rate on miners from 25 to 35 percent for this year, according to Reuters.
“There are areas we need to look at carefully to decide whether the windfall tax is the best way to go…It’s a complex tax and we are still weighing the options,” Ben Aryee, chief executive of the Minerals Commission told Reuters.
The International Monetary Fund last year recommended that Ghana, which is also the world’s number 2 cocoa grower and an oil producer, consider raising taxes or introducing new ones to increase revenues.
The Ghana Mine Workers Union had called for a windfall tax in addition to raising the country’s stake in mining projects to enable the economy to benefit from the soaring gold prices.
The Chamber of Mines has publicly opposed the windfall tax, however, saying miners are already overburdened with high operational costs particular to the region.