In a bid to strengthen Ghana’s mining sector and ensure economic stability, Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has committed to reducing the mining export tax from 1.5% to 1% if elected in the 2024 general elections. This move is part of a broader strategy to address gold smuggling and enhance the country’s financial resilience.
Speaking at a campaign event on August 8, 2024, Dr. Bawumia underscored the importance of creating a more favorable tax environment to discourage illegal gold exports. He pointed out that a previous reduction in the gold export levy from 3% to 1.5% had already led to significant improvements, with gold export volumes steadily recovering since the change.
“A few years ago, I pushed for the reduction of the gold export levy (withholding tax) from 3% to 1.5%. The result of this is that after a sharp decline in 2021, the gold export volumes have been steadily recovering, with 2024 showing promising signs,” he noted. He emphasized that in the first half of 2024 alone, the small-scale mining sector produced a total export volume of 821.97 troy ounces—more than double the figures from 2023 and 2022.
The proposed reduction to 1% is seen as a continuation of this success, aimed at further encouraging legal and transparent gold transactions. Dr. Bawumia believes that this policy will not only curb smuggling but also boost domestic gold refining and support his proposed “gold for oil” and “gold for reserves” programs.
“Given our strategic intention to realize higher production volumes to refine locally and support the gold for oil and gold for reserves programs for a stable currency, I will further reduce the withholding tax from 1.5% to 1%, in the next government under my presidency,” he pledged.
These initiatives, according to Dr. Bawumia, are crucial for stabilizing the national currency and bolstering Ghana’s foreign reserves, ultimately contributing to the country’s economic stability and growth.
