Ghana Chamber of Mines Urges Government to Exempt Exploration Companies from VAT

The Ghana Chamber of Mines is calling on the government to exempt exploration companies from VAT to spur investment in mineral exploration. This initiative is critical for the future of the mining sector, especially in light of economic challenges. President Michael Edem Akafia highlighted the need for government support, citing growth in gold production and the importance of security measures against illegal mining.

The Ghana Chamber of Mines is urging the government to exempt exploration companies from Value Added Tax (VAT). This call aims to boost investment in the mineral exploration sector while ensuring its long-term sustainability. The Chamber believes that relieving these companies from VAT will encourage growth and attract more investment amidst present economic challenges.

Michael Edem Akafia, the Chamber’s president, made this appeal during the organization’s 97th Annual General Meeting held recently. He pointed to the importance of exploration for the future of the mining sector and stated that it should be incentivized. “This gathering not only reflects on the state of our industry but also reaffirms our commitments to advancing the socio-economic transformation of our country through sustainable mineral development,” Akafia stated.

During his speech, Akafia expressed awareness of macroeconomic and geopolitical challenges, including global inflation and supply chain issues, that could negatively impact the mining industry in 2025. He pointed out, however, that the gold sector continues to serve as a crucial element for the economy. He urged the government to remove VAT on exploration, emphasizing that this would attract further investments into the industry’s upstream segment.

According to the Chamber, Ghana is still the number one gold producer in Africa. National gold output reportedly grew from 125.6 tonnes in 2023 to 149.8 tonnes in 2024, marking a substantial 19.3 percent increase. Additionally, mining and quarrying have notably contributed to GDP, expanding nearly 10 percent in 2024 compared to 1.7 percent the previous year.

Akafia did not hold back on mentioning the risks associated with illegal mining. He reiterated the need for more robust security measures from the government to protect legitimate operations. He cautioned of potential downside risks to growth linked to illegal activities and called for support that includes the scrapping of VAT on exploration.

The Annual General Meeting was a significant event, drawing in stakeholders from various sectors, including government officials and business leaders. They convened to discuss the pressing issues facing the mining industry while considering the direction forward for sustainable practices.

In summary, the Ghana Chamber of Mines is pushing for the removal of VAT on exploration activities to enhance investment in the mining sector. This initiative coincides with the recognition of various challenges ahead, including economic pressures and illegal mining. The Chamber remains steadfast in its commitment to contributing to Ghana’s socio-economic growth while promoting responsible mining practices.

Original Source: asaaseradio.com