Ghana still made GHC2.16 billion in 2017 from the mining sector, despite the Vice President’s complaints that the government’s interest’ in mining operations are virtually useless.
Overall, the total mining fiscal receipts mobilised by the Ghana Revenue Authority (GRA) increased by 31 percent, from GHC1.65 billion in 2016.
This is according to data and research from the Ghana Chamber of Mines and the GRA.
The Vice President, Dr Mahamudu Bawumia, was upset at the perceived lack of cooperation from mining companies at a recent meeting with officials of the IMF and stakeholders in the extractive industry.
The Veep went as far as saying that mining companies operating in the country have since 2012 refused to pay dividends to governments.
He added that the government was taking some practical steps to review the mining laws.
“Ghana as in many countries in the mining sector for example has a carried interest of about 10 percent. Out of this carried interest the expectation is that Ghana would receive dividend for this carried interest in our mines. When we look at the data however, we see a matrix of zeros as far as the dividends that Ghana earns from this carried interest from 2012 is concerned.”
However, the minerals and mining sector retained its position as the foremost source of direct domestic revenue mobilised by the Ghana Revenue Authority (GRA) in 2017.
Specifically, corporate income tax receipts increased from GHC696.9 million in 2016 to GHC969.6 million in 2017 while mineral royalty revenue grew from GHC550.7 million to GHC702.4 million over the same period.
Furthermore, employee income tax increased by 22 percent. The country realised GHC487.9 million in 2017 as compared to GHC399.9 million in 2016.
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