The Ghana Chamber of Mines is urging the government to remove Value Added Tax (VAT) on mining exploration activities, arguing that this would help attract more investment into the sector.
According to Ahmed Nantogmah, Director of External Relations and Communications at the Chamber, removing VAT on exploration would enable companies to invest more in discovering commercially viable mineral deposits, ultimately leading to the establishment of new mines.
“You know, mining exploration precedes mining. You can’t have a large-scale mine in your community without first conducting exploration to locate the resources,” Mr. Nantogmah stated. “By removing VAT on exploration, companies can invest all their funds into finding commercial deposits, which could lead to new mines that benefit local communities.”
Mr. Nantogmah emphasized that successful exploration would result in the development of mines that could generate revenue for local assemblies and create jobs in mining districts. In addition to the VAT proposal, the Ghana Chamber of Mines is advocating for an increase in the percentage of mineral royalties allocated to mining districts.
Currently, 20 percent of the total mineral royalties paid by mining firms to the government are allocated to mining districts. However, the Chamber is pushing for this percentage to be raised to at least 30 percent to ensure that mining communities benefit more directly from the industry’s revenues.
“We are appealing to the government to release the Mineral Development Fund (MDF) monies to the assemblies for specific, sustainable projects,” Mr. Nantogmah added. He urged that the royalties should not be used for current expenditures but rather for investments in long-term projects that would benefit future generations.
He was speaking in Bolgatanga in the Upper East Region during a stakeholder engagement organized by the Ghana Chamber of Mines. The engagement, which was themed “Leveraging the Presence of a Mine for Sustainable Development,” brought together key stakeholders, including local government authorities, traditional leaders, civil society organizations, academia, and representatives from the mining sector, to explore collaborative strategies for maximizing the benefits of mining activities for sustainable development.
The Chamber also called on local assemblies to innovate and explore revenue-generating activities beyond solely relying on taxes from mining firms. “If assemblies only focus on taxes, they might not have enough resources in the long run. They need to be investor-oriented, ensuring that they make the most of the royalties and other funds available to them,” Mr. Nantogmah added.
The paramount chief of Nangodi, Naba Yelzoya Kosom Asaga II, urged mining companies in the region to act responsibly in their operations. While calling for concerted efforts to end illegal gold mining, commonly known as ‘galamsey,’ Naba Asaga II called on the institutions of the country to empower chiefs to combat this issue.
On his part, Naba Sigri Bewong, the paramount chief of Sekote, urged companies to ensure their impact is felt in the region, especially in the communities where they operate.
Source: A1Radioonline.com | 101.1 MHz | Joshua Asaah | Bolgatanga
