Dr Amin Adam Applauds Tax Cuts but Warns of Mining Sector Risks Over 200% Increase in Growth & Sustainability Levy
Ghana’s former Finance Minister, Dr. Mohammed Amin Adam, has endorsed Dr Cassiel Ato Forson’s decision to abolish certain taxes in the 2025 Budget but however, cautioned that new fiscal measures could have unintended consequences for key economic sectors.
Finance Minister Dr. Cassiel Ato Forson, in the 2025 Budget presented on March 11, 2025, announced the removal of several levies, including the betting tax and Electronic Transaction Levy (E-Levy), as part of efforts to alleviate financial pressures on households and businesses.
However, the Finance Minister also introduced some new fiscal measures which included an increase in the growth and sustainability levy on the gross production of mining firms.
Speaking on Channel One TV’s The Point of View on March 17, 2025, Dr. Amin Adam welcomed the tax cuts but raised concerns over a sharp increase in the Growth and Sustainability Levy on mining companies from 1% to 3%.
“I think that he has delivered, but I think that he has also imposed additional taxes. For example, the Growth and Sustainability Levy increased by 200% from 1% to 3%. If the sector that gives you growth is the sector that you are heavily taxing more, then what kind of economics are you doing?” he said.
He questioned the rationale behind imposing higher levies on industries central to economic expansion.
“I’m not saying don’t tax the extractive industry, but if you are alluding to the fact that this is what generates our growth, why would you want to tax the hen that lays the golden egg?”
The government has set a 2025 revenue target of GHS 224.9 billion, up from GHS 186.6 billion in 2024. While analysts, including Deloitte, have acknowledged the benefits of revenue-enhancing measures, they stress that their success will depend on effective implementation and a careful balancing of fiscal policies to sustain economic growth.
