The government has laid before Parliament the Growth and Sustainability Levy (Amendment) Bill, which proposes reducing the levy imposed on gold mining companies from 3% of gross production to 1%.
The move is part of efforts to ease the financial burden on mining firms following the introduction of the Minerals and Mining Royalty Regulations, 2025, a new regulatory framework designed to adjust royalty payments in line with global commodity prices.
The Legislative Instrument introduces a sliding-scale royalty system, allowing rates to increase or decrease depending on international gold prices. Under the arrangement, the government is expected to earn higher royalties during periods of strong commodity prices.
However, the Minority Caucus in the Parliament of Ghana has raised concerns about the potential impact of the regulation. According to the caucus, the new framework could threaten up to one million jobs and reduce the attractiveness of Ghana’s mining sector to investors.
In response, the government says the proposed reduction in the Growth and Sustainability Levy is intended to cushion mining companies and offset the possible financial impact of the new royalty regime.
Officials argue that the amendment seeks to maintain a balance between maximising state revenue from natural resources and preserving investor confidence in Ghana’s mining industry.