Ghana Ponders Reversal of Gold Export Tax

SEATTLE (Scrap Monster): Ghana- the biggest gold producer in the African continent, announced that it considers to rethink on gold export tax, as recent data indicates significant rise in gold smuggling from small gold mines in the country, which in turn has resulted in loss of huge sums of money in the form of revenue.

The official data suggests that the official gold output by the nation recorded notable decline by 14% during the previous year. It attributed pandemic-related disruptions in operations as well as the newly introduced 3% export tax on small-scale miners in the country as the primary reasons for the huge slump in output. The output is expected to witness further decline during the remainder of the year.

ALSO READ:

Illegally Mined Gold Represented 17% of Brazil's Total Gold Exports

Resolute Mining Announced Sale of Ghana Gold Mine Asset

The country’s Finance Minister Ken Offori-Atta said that the government is currently relooking at the export tax, after considering the impacts of the tax on the gold sector and the entire economy of the nation. A final decision is expected to be announced in the upcoming budget, he said.

It must be noted that Ghana had introduced export tax in May 2020, in an attempt to boost earnings resources. Since then, the official gold export volumes by the country have witnessed dramatic decline, suggesting that sizable volumes of gold have started leaving the country through illegal channels.