PwC Ghana’s Vish Ashiagbor emphasizes the need for dialogue over the government’s plan to increase the Growth and Sustainability Levy from 1% to 3%. He highlights concerns from the mining industry about lack of consultation. Ashiagbor calls for structured dialogue to maintain a balance between revenue generation and industry sustainability.

Vish Ashiagbor, the Country Senior Partner at PwC Ghana, has stressed the importance of ongoing dialogue between the government and mining companies regarding the proposed increase in the Growth and Sustainability Levy from 1% to 3%. The Finance Minister, Dr. Cassiel Ato Forson, announced this increment on March 11, 2025, with plans for it to remain effective until 2028.

Industry leaders have expressed concerns about the short notice and lack of meaningful consultation preceding this announcement. During PwC’s 2025 Budget Digest Forum held on March 18, 2025, Ashiagbor recognized the challenges faced by both the mining sector and the government’s fiscal situation.

He noted that mining firms base their investment decisions on long-term strategies. Consequently, unexpected changes such as the Levy increase could jeopardize their financial forecasts and overall profitability.

Ashiagbor articulated, “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.”

PwC has advocated for a structured dialogue between governmental bodies and industry stakeholders, emphasizing the necessity of balancing revenue generation and the sustainability of the mining sector.

In summary, the recent announcement regarding the increase of the Growth and Sustainability Levy has raised significant concerns within the mining industry. Vish Ashiagbor of PwC Ghana highlights the potential disruption to long-term investment strategies. Continuous dialogue between the government and mining firms is crucial for addressing these challenges and achieving a balance between fiscal objectives and industry viability.

Original Source: www.ghanaweb.com