Vice President Mahamadu Bawumia has announced his plan to cut the withholding tax on gold mining from 1.5 percent to 1 percent if elected president .
At the inauguration of the Royal Ghana Gold Refinery, Dr Bawumia addressed the revenue challenges associated with the current 1.5 percent withholding tax.
To address these issues, Dr. Bawumia noted that this rate has led to increased tax evasion and gold smuggling to neighboring countries. He proposed reducing the withholding tax to 1 percent upon assuming office next year. He cited
“ previous reduction from 3 percent to 1.5 percent, initially caused a decline in gold exports but has since rebounded in 2024.This recovery supports the government’s efforts in local refining and the gold-for-oil and gold-for-reserves programs aimed at stabilizing the currency.”
Additionally, Dr Bawumia stated that the Royal Ghana Gold Refinery will create between 80 and 100 direct jobs and over 500 indirect jobs.
“The refinery will process 400 kilograms of gold daily and projection of it is to generate more than $10 billion in revenue by the end of the year. this adjustment will improve tax collection and boost government revenue.”
