Government to Offset E-Levy Revenue Loss with Unused Tax Refund Funds and Increased Gold Mining Levies

The government has announced plans to utilize funds from unspent tax refund allocations and a hike in gold mining levies to compensate for the revenue lost following the repeal of the Electronic Transfer Levy (E-levy). This was revealed by the Deputy Minister for Finance, Mr. Thomas Nyarko Ampem, in an interview on Wednesday, March 26, 2025.

Mr. Ampem explained that a recent review of the tax refund account over the past eight years revealed that only 43% of the allocated funds had been used for their intended purpose of refunds, while the remaining 57% was misappropriated. He emphasized that the government has decided to halt this misuse and redirect the funds into the Consolidated Fund, where they can be appropriately allocated to meet the country’s needs. He estimated that more than GH¢3.88 billion could be generated from this source alone.

In addition to this measure, Mr. Ampem also announced an extension of the sunset clause for the Growth and Sustainability Levy, which will now last until 2028. Furthermore, the levy on gold mining companies will be increased from 1% to 3%, citing strong profits within the sector, driven by high global gold prices.

“If we don't raise revenue from profitable sectors like mining, which sectors should we tax?” Mr. Ampem remarked. “We certainly won't tax the cocoa sector, which is already struggling, as that would only worsen the plight of cocoa farmers.”

Addressing concerns about the broader tax burden, Mr. Ampem assured that the government was taking measures to avoid placing additional strain on ordinary Ghanaians. He highlighted the removal of the emissions levy and the 1.5% withholding tax on small-scale miners as part of efforts to ease the financial burden on low-income groups. Additionally, the removal of the withholding tax on small-scale mining is intended to incentivize legal gold sales through the Ghana Gold Board, a strategy the government believes will help boost foreign exchange inflows.

Source; theghanareport

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