Ghana puts plans for mining windfall tax on hold

January 27, 2014

Bowing to pressure from the mining industry over proposed tax, Ghana has put its plans to introduce a windfall tax on hold.
Ghana’s Finance Minister, Seth Terkper, told Reuters of the move on Jan. 23.

Ghana is Africa's second-biggest gold producer and the precious metal is a large source of revenues for the country whose government is seeking to maintain rapid economic growth while reining in the deficit and inflation.

President John Mahama said his country had come under pressure from the industry over the planned tax, with companies warning it would lead to job cuts due to a steep fall in gold prices.

"It's on hold in parliament and we are consulting," Terkper told Reuters.

Terkper had told parliament during the annual budget in November that the government would impose the tax, which it has been trying to push through since 2012. No timeframe was given at the time.

Ghana is viewed as one of Africa's most dynamic countries because its stable democracy is coupled with robust economic growth led by exports of gold, oil and cocoa.
 

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