You are here: HomeNews2014 01 22Article 298565

General News of Wednesday, 22 January 2014

Source: XYZ

Mining firms blackmail Ghana over windfall tax - Mahama

Mining companies in Ghana have forced the West African country which is the world’s second largest gold producer, into suspending the implementation of the windfall tax introduced in the mining sector in 2012, President John Mahama has revealed.

He told the World Economic Forum in Davos on Wednesday that his government has not been able to implement the policy due to threats from the mining companies to layoff many workers should the tax be rolled out.

“They threatened to lay off workers if we implemented the windfall tax and because we needed the jobs and you don’t want workers laid off you are coerced to go along. So these are major issues we have”, he bewailed.

“…They will not allow us to implement a windfall tax in our country”, President Mahama said.

Implementing the windfall tax regime would mean mining companies will be compelled to pay 10 percent of their profits to the Government of Ghana.

The Ghana Chamber of Mines had earlier warned that the windfall tax dampen the resolve of investors in Ghana’s mining sector.