Mining still leading contributor of fiscal revenue

The Ghana Chamber of Mines says the minerals and mining sector contributed GH¢1.24billion to the country’s economy, making it the leading contributor of fiscal revenue to the state.

The amount represents 16.2 percent of total direct tax in 2014 relative to a share of 18.7 percent in 2013, and was presented through the Ghana Revenue Authority (GRA).

The fiscal proceeds mobilised by the GRA from the sector comprised GH¢454.5million, GH¢470.3million and GH¢312.6million in corporate taxes, royalties and Pay-As-You-Earn (PAYE) taxes respectively.

The President of the Ghana Chamber of Mines, Mr. Johan Ferreira speaking at the Chamber’s 87th annual general meeting in Accra, explained that the subdued revenue inflow from the sector impacted negatively on government’s capacity to finance the country’s recurrent and capital expenditure -- and this sentiment was also expressed by the Minister of Finance Mr. Seth Terkper in the 2015 budget and economic statement.

Data from the Bank of Ghana (BoG) indicate that the share of mineral exports in total merchandise exports reduced to 34 percent from 37 percent in 2013.

This outcome, Mr. Ferreira said, stemmed mainly from the bearish price of gold on the world market. He also pointed out that for the second successive year the aggregate mineral revenue of the chamber’s members declined, as it dropped from about US$4.8billion in 2013 to about US$4billion in 2014 -- representing a fall of 17 percent.

“Gold revenue, which accounted for nearly 98 percent of the basket of mineral revenue, also declined from about US$4.6billion in 2013 to about US$3.8billion in 2014,” he stated.