Ghana budgets for mining tax hike

Friday, Nov18, 2011

Reuters reported that Ghana will seek to boost revenues from its mining industry next year by hiking taxes, according to a text of the 2012 budget delivered to parliament.

The corporate tax rate on miners will increase to 35% from 25% and a separate 10% tax on windfall profits will be introduced.

The move follows talks between Ghana's government and gold miners last month, in which the government proposed new ways for the country to benefit from the soaring price of the precious metal.

Ghana is Africa's second-biggest gold producer nation and the International Monetary Fund said in October it had recommended the country consider increasing taxes or introducing new ones to boost revenue.

Ghana, also the continent's newest oil producer and the world's No 2 cocoa grower, expects GDP growth of 9.4% in 2012 from 13.6% in 2011.

(Sourced from Reuters)