Mining Firms in the counrty have welcomed the suspension of the proposed windfal tax by government.
Close sources in Ghana?s mining industry hinted that the implementation of the winfall tax could have grounded the mining industry at a time that the industry is facing major challenges.
According to our sources, the suspension of the?windfall tax could greatly enhance the operations of the firms and increase their profits. The firms have had difficulties in?attracting additional capital for their operations as well as decline in their stock prices because of moves to introduce the tax.
The suspension, they believe could not have come at a good time, as they are currently?struggling because of?declining gold prices. President John Dramani Mahama last week ordered the ministry of Finance to suspend the introduction of the windfall tax.
Dr. Toni Aubynn Chief Executive of Ghana Chamber of Mines charged mining companies to ?take advantage this situation?, adding that it would have ?positive effect on decision to bring in more money to Ghana?. The suspension could see the?gold companies also put on?hold plans to lay off more of their workers, because of declining gold prices.
Tax policy advisor at?Ministry of Finance, Dr. Edward Larbi Siaw says government is awaiting?recommendations from a?committee reviewing the tax to consider the way forward.
