Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Looming mining sector job losses due to tax hikes, falling gold prices

galamsey 2Chief Executive Officer (CEO) of the Ghana Chamber of Mines, Dr. Tony Aubynn, says government’s 5% corporate tax coupled with falling gold prices on the international market is likely to result in significant job losses in the sector.

According to him, it is not only jobs that would be lost, but every aspect of the business operation of mining companies would have to be reviewed to ensure profitability.

“Once prices tend to reduce, and the projection is that they are going to reduce more, and once the cost [of doing business] keeps going up, the rational thing to do is to review all your operations,” said Dr Aubynn.

The mining companies also said they may have to suspend agreements with some contractors due to the high cost of doing business in the country currently.

Parliament this month approved the National Fiscal Stabilisation Levy (NFSL) to enable government generate more revenue for economic expansion. Per this levy, mining firms will now be required to pay 5% on profit before tax.

Also all businesses that depend on mining would also be affected, Dr Aubynn said.

Earlier this week, Chief Executive Officer of the Private Enterprise Federation (PEF) warned of dire consequences for Ghana’s economy following hikes in taxes brought about by the NFSL.

Nana Osei Bonsu said Small Scale Enterprises in the country are likely to collapse in the coming weeks whilst others will lay off workers as a result of the levy.

The PEF CEO said that it was essential for government to explore cost cutting measures first to reduce the funding gap before bringing in new revenue measures such as the stabilisation tax.

Source: Joy Business

Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.

Profile photo of Editor
Follow Us

Editor

Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
Profile photo of Editor
Follow Us

Share this article

Leave a reply

Personality of the Month
  • Prof. Thomas Mba Akabzaa Chief Director of Ministry of Petroleum          …
Follow Us Online
Join the Discussions

Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992…

Responses Add your response


About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Aug 2017 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar