The Minister for Lands and Natural Resources, Samuel Abu Jinapor has disclosed that government is reviewing the Value Added Tax (VAT) component of the tax build up on the cost of exploration for prospective mining companies.
He made this disclosure at the opening ceremony of the 2024 West African Mining and Power Conference and Exhibition (WAMPOC / WAMPEX) programme.
He noted that the move is expected to lessen the tax burden on the exploration of natural mineral resources and make it more attractive to increase foreign direct investments in the sector.
“We are, for example, working with the Ghana Revenue Authority (GRA) 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 (VAT) on exploration.”
“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.”,he added.
The initiative forms part of efforts by government to create a conducive environment for the investment in exploration of new mineral deposits in the country.
He emphasized that it is importance incentive investors to undertake the exploration of new minerals in Ghana to rake-in the needed revenue in the sector.
“We aim to unlock the full potential of Ghana's mineral wealth, create employment opportunities, and stimulate economic growth in the mining sector and beyond.”
The 2024 West African Mining & Power Conference and Exhibition WAMPOC WAMPEX, a three-day conference and exhibition is expected to bring together strategic private and public industry stakeholders to deliberate on sustainable investments for the mining and power industry in West Africa. The technical workshops and extended B2B networking opportunities for over 80 exhibitors from 16 countries.
The theme for the conference is “The Mining and Power Hub: Driving Sustainable Investment Opportunities in West Africa”.
Credit: Isaac Atta-Osei