Government considers reducing taxes on mineral exploration in Ghana

The Government of Ghana is exploring ways to reduce taxes on mineral exploration, according to Minister for Lands and Natural Resources, Mr Samuel Abu Jinapor.

Speaking at the West African Mining and Power Conference and Exhibition, Jinapor acknowledged the importance of exploration in the mining industry and the need to create a conducive environment for investment.

While the government stopped short of announcing the scrapping of taxes on mineral exploration, Jinapor assured that government was working with the Ghana Revenue Authority and the Ghana Chamber of Mines to find a framework that would reduce the financial burden on exploration companies.

“We are, for example, working with the Ghana Revenue Authority and the Ghana Chamber of Mines, under the guidance of Government’s Economic Management Team, to explore the best framework for treating critical imposts such as Value-Added Tax on exploration,” the Minister stated.

Mr Jinapor admitted that if properly structured, it will reduce the financial burden on exploration companies, making it more attractive to invest in exploration, while safeguarding the nation’s interest.  

The Ghana Chamber of Mines has been advocating for the exemption of exploration companies from paying taxes, citing the high risk and cost of mining explorations. CEO Dr. Koney emphasized that the probability of making a commercial find is low, and removing taxes would make exploration easier and attract more investment.

The government’s consideration of reducing taxes on mineral exploration is a positive step towards promoting investment in the mining industry and unlocking Ghana’s mineral wealth. The move is expected to create employment opportunities and stimulate economic growth in the mining sector and beyond.

The theme for the three-day event is ‘The Mining and Power Hub: Driving Sustainable Investment Opportunities in West Africa.

The event aims to highlight and explore sustainable investment opportunities within the mining and power sectors in West Africa, providing a platform for knowledge exchange and collaboration among industry stakeholders, fostering innovation, and best practices.

The exhibition is expected to strengthen regional and international partnerships, driving growth and development in the mining and power industries and showcasing the latest technological advancements and innovations transforming these sectors.