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


News in Brief

Small-scale miners to pay 10% withholding tax

MININGIt has become compulsory for purchasers of unprocessed minerals from unlicenced, small-scale and artisanal miners to pay a 10 percent withholding tax (WHT), in a move that could spur revenue growth the revised Income Tax Act, 2015, (Act 896), has stipulated.

The new WHT on the purchase of unprocessed minerals is in line with efforts by government to broaden the tax base. Earnings from the 10 percent tax should compensate losses the country currently incurs through their operations as a result of non-payment of royalties and other tax revenues.

A Deputy Commissioner at the Domestic Tax Revenue Division (DTRD) of the Ghana Revenue Authority, Mr. Edward Gyambrah, speaking at a media interaction in Accra explained that before the new act’s introduction, activities of artisanal and illegal miners paid no taxes except for value added tax (VAT) on their inputs.

Government is aiming at taking part of the growing pie in the small-scale, artisanal and illegal mining business, which accounted for 34 percent representing approximately 1.6 million ounces of national gold output in 2014.

In 2014, the country’s gold output fell by 17 percent to 3.16 million ounces about US$3.18billion on account of lower production in all the major mining companies except those in the operations of small-scale, artisanal and unlicenced operators.

It is estimated that about GH¢500million is lost annually in taxes and royalties to these artisanal, small-scale and unlicenced gold miners.

A Tax Policy Advisor at the Ministry of Finance, Dr. Edward Larbi-Siaw, disagreed with concerns that the disorganised nature of operators in that bracket will render the new tax ineffective, explaining that measures are in place to help get every operator in that segment to comply.

“Because they are difficult to reach, we are saying that when buyers buy their products, they should withhold; and that is the only way we can get them to also contribute to revenues,” he said.

Their products are mostly sold to the licenced gold buyers and the Precious Minerals Marketing Company (PMMC).

Dr. Larbi-Siaw said government is now hoping to reverse that trend by first getting them to contribute to national revenues.

“If you look at the way they are degrading the environment, dirtying the water and things like that, the only way we can benefit from them is to let them contribute small. But we are not leaving it there; when the tax starts we will then organise them into formal operations,” he said.

Source: http://thebftonline.com/business/mining/16921/small-scale-miners-to-pay-10-withholding-tax.html#sthash.ikV1bQxe.dpuf

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