PwC Ghana Advocates for Stakeholder Engagement Over Mining Levy Increase

PwC Ghana’s Vish Ashiagbor calls for ongoing dialogue between the government and mining firms about the Growth and Sustainability Levy increase from 1% to 3%. Industry leaders express concerns over the lack of consultation prior to the decision announced on March 11, 2025. Ashiagbor acknowledges the fiscal challenges and insists on the importance of structured dialogue to balance revenue generation with industry sustainability.

The Country Senior Partner at PwC Ghana, Vish Ashiagbor, has underscored the importance of ongoing dialogue between the government and mining companies concerning the recently announced increment of the Growth and Sustainability Levy from 1% to 3%. This increase, revealed by the Minister of Finance, Dr. Cassiel Ato Forson, on March 11, 2025, is scheduled to last until 2028.

Industry leaders have expressed concerns regarding the timing of the announcement, alleging that they were given insufficient notice and were not adequately consulted prior to the decision. During PwC’s 2025 Budget Digest Forum in Accra on March 18, 2025, Ashiagbor recognized these industry concerns while also acknowledging the fiscal difficulties faced by the government.

Ashiagbor emphasized that mining firms base their investment decisions on long-term strategies. Consequently, unexpected policy shifts, such as the levy increase, can adversely affect their financial predictions and profitability. He noted, “The argument that those in the mining sector are making is that they make their plans or their investments based on a long-term plan. So, when you suddenly impose or increase the levy and extend its tenure, it disrupts their planning and may affect their expected returns.”

Furthermore, PwC has advocated for a structured dialogue between governmental bodies and industry stakeholders, deeming it vital to achieve a compromise between revenue generation and sustainability within the mining sector.

In conclusion, PwC Ghana urges the government to engage in constructive discussions with mining companies regarding the recent levy increase. The concerns of industry leaders about insufficient consultation are valid, highlighting the necessity for ongoing communication. Such dialogue is critical for ensuring that fiscal policies do not hinder the long-term planning and profitability of the mining sector, which plays a significant role in the economy.

Original Source: www.ghanaweb.com