Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Ghana will seek to boost revenues from its mining industry next year by hiking taxes, according to a text of the 2012 budget delivered to parliament on Wednesday.
The corporate tax rate on miners will increase to 35% from 25% and a separate 10% tax on windfall profits will be introduced, according to the text.
Comments
Augsuko
What the the Ghana government has not taken into consideration is the impact of these hikes on the current operations and future expansion projects of the mines currently operating in the country. One of the theme of this budget is to create more jobs for the people but these hikes may do exactly the opposite with possible down sizing of current operations and curbing of long term investments in the mining sector. It is understandable for the government to seek more revenue from the sector, but one has to be careful not to kill the goose that lays the golden eggs.