IEA’s Dr. John Kwakye Backs Increased Levy on Mining Companies, Calls for Windfall Tax

The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has expressed support for the government’s decision to increase the Growth & Sustainability Levy on mining companies.

Reacting to the 2025 Budget Statement, Dr. Kwakye stated that the tax—originally introduced in 2001 as a Fiscal Stability Tax—is outdated. He, however, agreed that a higher levy on the mining sector is justified, suggesting that the government go even further by introducing a Super-profit or Windfall Tax of at least 10%.

“A higher tax on the mining sector is justified. Indeed, what is needed is a Super-profit or Windfall Tax of at least 10%,” Dr. Kwakye wrote on his X (formerly Twitter) page.

His comments come amid concerns raised by former Deputy Minister of Finance, Mona Quartey, who has criticized the government’s decision to increase the levy from 1% to 3%, warning that it could negatively impact the extractive sector.

Presenting the 2025 Budget Statement on March 11, Finance Minister Dr. Cassiel Ato Forson defended the levy hike, stating that it is intended to ensure Ghana benefits from rising global gold prices. He also proposed extending the sunset clause for the levy to 2028.

The increase in the Growth & Sustainability Levy is expected to generate additional revenue for the government, but it has sparked debate over its potential impact on mining investment and job creation in the country.