Accra — Ghana’s mining industry is urging the government to widen its fiscal lens as it revises the country’s royalty regime, arguing that bringing small-scale miners fully into the tax base would raise revenues more sustainably than placing heavier burdens on large-scale producers.
Speaking on Joy News’ PM Express Business Edition, Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, called for deeper engagement between government, the Minerals Commission and industry stakeholders to formalise taxation in the small-scale mining sector.
According to Mr Ashigbey, small-scale miners now produce more than half the output of large-scale mines, yet remain lightly regulated in terms of taxation and fiscal compliance.
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“We, as a country, tend to do light regulation,” he said. “Once the right percentages are agreed, they would also be able to put a bit into the kitty.”
Expanding Revenue Without Overburdening Big Mines
Mr Ashigbey argued that broadening the tax base would allow government to meet its revenue targets without excessive reliance on large-scale mining companies, which already account for the bulk of formal fiscal contributions from the sector.
“The policy objective of government is to get more,” he said. “They would be able to take a lot more from the large-scale mines. The small-scale miners would also be able to bring in a bit more, and then all of us as a people would be able to get more.”
The Chamber’s position reflects growing concern within the industry that fiscal reforms driven by today’s elevated gold prices could undermine long-term production, investment and employment if not carefully calibrated.
Warning Against Short-Term Policy Choices
While reiterating that the mining industry is not opposed to taxation, Mr Ashigbey stressed that fiscal policy must be anchored in balance and sustainability rather than commodity price cycles.
“We are all open to fair taxation. That is something that we are not arguing about,” he said.
He cautioned against making permanent policy decisions based on what he described as temporary market conditions.
“This phenomenon is a short-term phenomenon. You don’t take decisions that are long-term in nature just based on the phenomenon,” he said.
Using a vivid metaphor, he warned against fiscal short-termism.
“You see, eating on a constant and continual basis is better than eating one large meal once,” he said, adding that Ghana must avoid what he described as an “Esau mentality” in public policy.
A Sliding Royalty Alternative
Mr Ashigbey disclosed that following government’s introduction of a new Legislative Instrument on mining royalties, the Chamber submitted a counter-proposal aimed at aligning state revenues with market realities.
Rather than a sharp, fixed increase, the Chamber proposed removing the Growth and Sustainability Levy and replacing the current structure with a sliding royalty scale between four and eight per cent.
“We made an offer,” he said. “The counteroffer we then made was to say that instead of sliding down to four per cent and sliding up all the way to eight per cent, take GSL off and slide between four and eight per cent.”
Under the proposal, royalties would rise during periods of high gold prices and fall when prices soften, providing stability for both government revenues and mining operations.
Community Development Fund
In addition to royalties, the Chamber proposed a one per cent contribution from net profits to a community development fund, designed to ensure mining communities benefit directly during commodity booms.
“That 1% is taken off net profit and put into a fund that we use for community development,” Mr Ashigbey said.
The fund, he explained, would allow communities to see tangible outcomes during periods of strong gold prices.
“When the prices of gold hit the roof, people in these mining communities should be able to point to the fact that we were able to do this project and do that project,” he said.
As Ghana weighs reforms to its mining fiscal framework, the Chamber’s proposals underscore a broader policy debate: how to maximise resource revenues while preserving investment, production and social stability across the sector.
Source: Accra Business News
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Samuel Kwame Boadu is a Ghanaian entrepreneur, writer, and digital consultant passionate about creating impactful stories and business solutions. He is the Founder & CEO of SamBoad Business Group Ltd, a dynamic company with subsidiaries in digital marketing, logistics, publishing, and risk management.
