Parliament slashes gold mining tax from 3% to 1% to stabilize sector

Parliament has officially passed the Growth and Sustainability Levy (Amendment) Bill, 2026, approving a significant reduction in the tax burden on gold mining companies. The levy on the gross production of gold has been cut from 3 percent to 1 percent.

The legislative amendment, passed on Thursday, is designed to cushion mining companies against the financial impact of the newly introduced Minerals and Mining Royalty Regulations, 2025. This new Legislative Instrument (L.I.) introduces a sliding-scale framework for royalty rates, which will now fluctuate based on international market prices, allowing the state to benefit from higher revenues during periods of high commodity prices.

While the government frames the tax reduction as a balancing measure, the decision has sparked concern among the Minority Caucus in Parliament. Critics argue that the new L.I. could render the mining sector less attractive to foreign investment and potentially jeopardize up to one million jobs in the industry.

In response to these criticisms during the parliamentary session, Deputy Finance Minister Thomas Nyarko Ampem defended the bill, stating that the reduction of the Growth and Sustainability Levy is a strategic move to mitigate the cumulative impact of the new royalty regulations on mining operations.

“We don’t make laws to suit individuals,” Ampem said. “We are bringing this change so that Ghana can take maximum advantage of its natural resources. We all know that we have been blessed with gold. Over the years, we haven’t taken enough advantage of this resource. This arrangement will make it fair to mining companies, and it will also make it fair to Ghanaians who are the owners of this natural resource.”

The passage of the bill reflects the government’s ongoing effort to balance the interests of mining investors with the nation’s right to profit from its mineral wealth, ensuring stability in the sector amid global price volatility.