PwC Ghana’s Vish Ashiagbor advocates for dialogue between the government and mining firms regarding the increase of the Growth and Sustainability Levy from 1% to 3%. While the announcement came with a short notice, Ashiagbor recognizes the government’s fiscal challenges and emphasizes the need for structured discussions to maintain a balance between revenue generation and industry sustainability.
Vish Ashiagbor, Country Senior Partner at PwC Ghana, has called for ongoing dialogue between the government and mining companies, especially in light of the recent increase in the Growth and Sustainability Levy from 1% to 3%. This announcement was made by Dr. Cassiel Ato Forson, the Minister of Finance, in Parliament on March 11, 2025, and the increase is set to extend until 2028.
Some industry leaders, however, have voiced concerns about the short notice provided and the lack of meaningful consultation prior to the levy increase. During PwC’s 2025 Budget Digest Forum in Accra on March 18, 2025, Ashiagbor acknowledged these industry concerns while also recognizing the fiscal challenges faced by the government.
Ashiagbor highlighted that mining companies typically base their investment decisions on long-term plans. Consequently, unexpected changes in policy, such as the increase in the Growth and Sustainability Levy, can disrupt their financial projections and overall profitability. He remarked,
“The argument that those in the mining sector are making is that they make their plans or their investments based on a long-term plan. So, when you suddenly impose or increase the levy and extend its tenure, it disrupts their planning and may affect their expected returns.”
In response, PwC has advocated for structured dialogue between the government and industry stakeholders. Ashiagbor emphasized that this dialogue is essential to balance revenue generation with the sustainability of the industry.
The increase in the Growth and Sustainability Levy from 1% to 3% has sparked concerns among mining industry leaders regarding consultation and the impact on long-term investment planning. Vish Ashiagbor of PwC Ghana has called for continuous dialogue to address these issues while acknowledging the government’s fiscal needs. Ultimately, a structured conversation may help reconcile the government’s revenue needs with the sustainability of the mining industry.
Original Source: www.ghanaweb.com
