Gold production in Ghana threatened by smuggling
Gold production in Ghana has been reported to be threatened by smuggling. Ministry of Lands and Natural Resources revealed the report and fears the country might lose its enviable first position as the leading gold producer in Africa because of a 3% withholding tax.
Deputy Sector Minister, George Mireku Duker attributed the fears to high incidence of gold smuggling by some producers to neighboring countries. The 3% withholding tax is one of the highest in the sub-region, which according to industry players is compelling most producers to smuggle their gold to nearby countries. This threatens Ghana’s gold production status and its revenue.
Ghana’s gold production status
To curb the problem, Small-Scale Mining held in Kumasi, Mr Duker revealed that there is an ongoing engagement with the Finance Ministry to review the tax. He expects the Ministry of Finance to reconsider the withholding tax to secure Ghana’s gold production status.
“Ghana is a leading producer of gold in Africa since 2018, and sixth in the world with an annual production of 4.2 million ounces. Let me reiterate the point here that if care is not taken on the withholding tax component that we have instituted, Ghana will move from the leading position to probably the third because we have realised that if we do the comparison from the export point, we realising that we are dwindling,” said Mr Duker
The deputy minister was speaking at a workshop on the digitalization of licensing of Small-Scale Mining in Kumasi. The digitisation initiative will ensure all districts and regional offices will employ digital programs to offer licenses to small-scale miners.
