The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has expressed support for the government’s decision to increase the Growth & Sustainability Levy on mining companies.
Reacting to the 2025 Budget Statement, Dr. Kwakye stated that the tax—originally introduced in 2001 as a Fiscal Stability Tax—is outdated. He, however, agreed that a higher levy on the mining sector is justified, suggesting that the government go even further by introducing a Super-profit or Windfall Tax of at least 10%.
<code>“A higher tax on the mining sector is justified. Indeed, what is needed is a Super-profit or Windfall Tax of at least 10%,” Dr. Kwakye wrote on his X (formerly Twitter) page.</code>His comments come amid concerns raised by former Deputy Minister of Finance, Mona Quartey, who has criticized the government’s decision to increase the levy from 1% to 3%, warning that it could negatively impact the extractive sector.
