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Business News of Tuesday, 9 November 2021

Source: www.ghanaweb.com

Government reconsidering 3% export tax on mineral resources – Ken Ofori-Atta

Gold smuggling activities have been affecting revenue generation Gold smuggling activities have been affecting revenue generation

• Gold smuggling affecting revenue generation

• Small scale mining operations slowed down in 2020

• Finance Minister to present 2022 budget on November 15


Finance Minister, Ken Ofori-Atta, has revealed government will in its upcoming budget make a decision on tax exports for small-scale mining producers, Bloomberg has reported.

The move, according to him, comes on the back of a surge in gold smuggling from small mines operating in the country.

In an interaction with Bloomberg, Ken Ofori-Atta said, “We are relooking at the 3% export tax and re-examining the effects on the sector and on the economy and we should announce our final decision in the [2022] budget.”

He added the current trend of gold smuggling on the part of some small-scale mining firms has been depriving the country of the much-needed revenue from the minerals sector.

Meanwhile, Ghana's gold production output recorded a 14 percent slump in 2020 as a result of the Coronavirus pandemic which impacted operation.

To mitigate this, government in May 2020 introduced a tax on the exports of small-scale mining producers in an attempt to maximize earnings from its resources.

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