Michael Edem Akafia is the President of the Ghana Chamber of Mines
The Ghana Chamber of Mines has called on the government to remove VAT on mineral exploration activities.
Michael Edem Akafia, President of the Ghana Chamber of Mines, pointed out that exploration is crucial to the mining industry’s long-term sustainability, serving as its foundation.
According to a report by citinewsroom.com, he urged the government to reconsider the imposition of Value Added Tax (VAT) on mineral exploration activities.
He said this levy poses a significant impediment to discovering new mineral resources and sustaining future production in the mining sector.
The sector faces numerous challenges, including rising production costs, declining mineral reserves, and increasing competition from other mining destinations.
The imposition of VAT on mineral exploration activities exacerbates these challenges by increasing the financial burden on mining companies, particularly during the exploration phase when returns on investment are uncertain.
“The relevance of exploration in ensuring a pipeline of viable projects cannot be overemphasised. It is the single most critical activity that guarantees continued mineral production,” Akafia said.
According to him, removing VAT on mineral exploration activities could have several benefits for Ghana’s mining sector.
Indicating it would reduce the financial burden on mining companies, enabling them to allocate more resources to exploration and development activities.
Removing VAT on mineral exploration activities is a policy measure that could help revitalise Ghana’s mining sector.
By reducing the financial burden on mining companies and making Ghana a more attractive investment destination, this move could lead to increased exploration activities, new discoveries, and sustained production.
DR/AE
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