PwC Ghana Calls for Government-Industry Dialogue on Levy Increase

Vish Ashiagbor of PwC Ghana emphasizes the importance of dialogue between the government and mining firms concerning the increase of the Growth and Sustainability Levy to 3%. Concerns have emerged about insufficient consultation leading up to this decision. PwC advocates for structured discussions to balance revenue generation with industry sustainability.

Vish Ashiagbor, the Country Senior Partner at PwC Ghana, has stressed the necessity for ongoing discussions between the government and mining companies regarding the recent hike in the Growth and Sustainability Levy from 1% to 3%. The government announced this increase on March 11, 2025, with the application set to extend until 2028.

Notably, certain industry leaders have expressed concerns that they were granted insufficient notice and experienced a lack of meaningful consultation on this matter. During PwC’s 2025 Budget Digest Forum held in Accra on March 18, 2025, Ashiagbor recognized the industry’s concerns but also acknowledged the government’s fiscal constraints.

Ashiagbor noted that mining companies base their investment decisions on long-term strategies. As such, abrupt policy alterations, like the levy increase, can disrupt their financial projections and hinder profitability.

He 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 government and industry participants. Ashiagbor believes this interaction is essential to achieve a balance between revenue generation and the sustainability of the mining sector.

In summary, PwC Ghana, represented by Vish Ashiagbor, underscores the importance of dialogue between the government and mining firms following the increase in the Growth and Sustainability Levy. Concerns about communication and consultation have been raised by industry leaders, reflecting the potential financial impact of sudden policy changes. A collaborative approach is recommended to ensure both governmental revenue needs and industry sustainability are adequately addressed.

Original Source: www.ghanaweb.com