Ken Ashigbey Demands Fair Ghana Mining Tax Reform for Small-Scale Miners

Ghana Chamber of Mines CEO Ken Ashigbey has demanded fair tax reforms to integrate small-scale miners into Ghana’s mining royalty regime, urging government action during Thursday’s Joy News PM Express appearance. His call for balanced Ghana mining tax policies targets gaps in small-scale miners regulation while promoting tax fairness across the mining sector.

Mr. Ashigbey revealed that small-scale operators currently produce over 50% of large-scale mines’ output despite minimal fiscal oversight. “We as a country tend to do light regulation,” he stated, emphasizing that proper tax structures would enable these miners to “put a bit into the kitty” while easing pressure on industrial producers.

The Chamber boss stressed that expanding the tax base through small-scale miners regulation would generate more government revenue without overburdening large-scale operators. He advocated for a system where “the small-scale miners would also be able to bring in a bit more” alongside contributions from formal mining companies.

Warning against short-term policymaking, Ashigbey cautioned authorities to “avoid an Esau mentality” that prioritizes instant gains over sustainable benefits. Drawing from Ghanaian wisdom, he remarked: “Eating on a constant and continual basis is better than eating one large meal once,” alluding to the dangers of cash-grabs during temporary gold price surges.

His comments come as stakeholders assess the Minerals Income Investment Fund’s role in ensuring tax fairness in mining communities. The Chamber CEO hinted at pending recommendations for sliding royalty scales and community development funds – proposals signaling deeper structural reforms in the second part of his intervention.

Disclosing specific measures, Ashigbey detailed the Chamber’s alternative royalty structure proposed after the government introduced its Legislative Instrument. “Instead of sliding down to four per cent and sliding up all the way to eight per cent, take GSL off and slide between four and eight per cent,” he explained during the interview, advocating for removal of the Growth and Sustainability Levy while maintaining a responsive tax framework.

The mining executive simultaneously proposed allocating 1% of corporate net profits to community development projects. “That 1% is taking off net profit and putting it into a fund that we use for community development,” Ashigbey stated, envisioning tangible local benefits during gold price spikes. His community benefit principle emphasizes that “people in these mining communities should be able to point to the fact that we were able to do this project and do that project” when prices surge.

The proposals arrive amid government efforts to broaden revenue streams while addressing persistent gaps in small-scale miners regulation. By simultaneously advocating for tax fairness mining reforms and community allocations, the Chamber seeks to distribute fiscal responsibility across operators of all scales.

Reiterating his caution against short-term revenue grabs, Ashigbey noted both large and small-scale operations remain vulnerable to gold price volatility. “You don’t take decisions that are long-term in nature just based on the phenomenon” of current high prices, he warned, stressing that sustainable mining tax equity requires mechanisms that function through market cycles.

Financial analysts observe this stance reflects mining companies’ preference for predictable fiscal environments over unstable windfall taxes. The proposed sliding scale would automatically adjust government receipts with global price fluctuations while preserving operators’ viability during downturns.

Implementation success hinges on expanding compliance among small-scale producers currently outside the formal tax system – a challenge requiring coordinated efforts between the Minerals Commission, traditional leaders, and district assemblies. Successful integration would mark a major step toward Ashigbey’s vision where “all of us as a people would be able to get more” from mineral resources.

The initiatives’ ultimate test lies in balancing immediate revenue needs with lasting sectoral health – a principle Ashigbey encapsulated through his culinary metaphor: “Eating on a constant and continual basis is better than eating one large meal once.” This approach to mining tax equity prioritizes reliable revenue streams over temporary price-driven gains while directing benefits toward affected communities.

Image Source: MYJOYONLINE