The Ghana Chamber of Mines has strongly pushed back against claims that the country’s mining sector is undertaxed, insisting instead that Ghana imposes one of the highest fiscal burdens on mining companies in the world.
In a statement issued on Monday, April 20, 2026, the Chamber argued that Ghana’s current mining fiscal regime results in an effective tax rate (ETR) of nearly 60% under prevailing assumptions, placing the country among the most heavily taxed mining jurisdictions globally.
The Chamber’s reaction comes in response to recent assertions by the Institute of Economic Affairs (IEA), which described Ghana’s mining framework as a royalty-based system and raised questions about adjustments made to the Growth and Sustainability Levy (GSL).
Rejecting the IEA’s characterisation, the Chamber clarified that Ghana operates a royalty-tax regime rather than a royalty-only model. It highlighted multiple fiscal instruments applied at different stages, including mineral royalties of 5% to 12%, a 1% GSL on mineral revenue, a 35% corporate income tax, and dividends from the state’s free carried interest.
“Collectively, these instruments ensure that the Government captures value at different stages of the mining value chain—irrespective of profitability,” the statement noted.
The Chamber, however, warned that the cumulative effect of these overlapping taxes is placing significant pressure on mining operations, especially high-cost and marginal mines. Many of the levies are charged on gross revenue and do not take operational costs into account.
It cautioned that continued reliance on such revenue-based taxes could harm Ghana’s competitiveness in attracting fresh mining investments and ultimately lead to lower government revenue in the long term.
“The adjustment of the GSL from 3% to 1%, while directionally appropriate, is inadequate to offset the cumulative burden imposed by the current fiscal structure,” the Chamber stated.
The industry body has therefore called on the government to recalibrate the mining fiscal regime to achieve a better balance between immediate revenue needs and the long-term sustainability of the sector.
The Chamber emphasised that fiscal stability, predictability, and competitiveness remain critical for sustaining investment in Ghana’s mining industry, which it described as highly capital-intensive and globally mobile.