• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Editor's pick

Revenue from extractive industry increases 15 times as government implements EITI recommendations

4 years ago
in Editor's pick, highlights, Home, home-news, latest News, Mining
2 min read
0 0
0
175
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

A total cumulative revenue of Ghs 10.6 billion ($4.2 billion) was realised from Ghana’s extractive sector for the period between 2004 and 2018.

On average, the revenue realised for the period under review was Ghs 706 million ($280 million), when compared to the average revenue of Ghs 46.3 million ($51.4 million) realised in 2004/2005, this represents a 15 times increment in extractive sector revenue for government.

The aforementioned increment in revenue from the nation’s extractive industry is contained in a report analysing the resulting revenue impact of some fiscal reforms recommended by the Ghana Extractive Industries Transparency Initiative (GHEITI) to government.

Chief among the fiscal reforms recommended by GHEITI include the increment of corporate taxes from 25 per cent to 35 per cent and the mandatory 5 per cent royalty rate from a previous 3 per cent rate.

Other inspired-GHEITI fiscal reforms were also carried out in the area of property tax, ground rent, license fees, dividends and other miscellaneous additions.

According to GHEITI, mineral revenue growth as a percentage of total government domestic revenues, increased from a mere 2 percent in the base year period of 2004/2005 to a stabilised rate of 4 percent from 2010 to 2018 – around the time GHEITI’s recommendations were being implemented by government.

In its report which is yet to be launched, GHEITI notes that yearly investment in the mining sector has increased significantly over the years from a low of $231.78 million in 2000, peaking at $1.4 billion in 2012 before reducing slightly to $953.17 million in 2018.

RelatedPosts

Summary of Events Following Confirmation of Deaths of Defence and Environment Ministers, Six Others in Military Helicopter Crash

FDI Rises to 3-Year High as Reforms Boost Investor Confidence

Togo is Flexing its Unrivaled Maritime Power

Some other key findings contained in the report include:

  • The study estimated a total of GH₵ 2.1 billion (US$713.9 million) additional mineral revenues as a result of the improvement in the mineral royalty from 3 percent to 5 percent flat rate and corporate taxes from 25 percent to 35 percent in 2010 and 2012 respectively. Mineral royalty improvement contributed a total of GH₵1.25 billion (US$417.1 million), that is 57.8 percent of the total addition; while corporate tax improvement contributed GH₵ 913.5 million (US$295.8 million), constituting 42.2 percent of the total addition.

Other revenues contributed a total of GH₵1.6 million (US$1.5 million). This brings the total direct contributions as a result of GHEITI’s policy recommendations to GH₵ 2,166,797,168.53 (US$713.9 million). This gain came mainly from two mineral revenue streams (royalties, corporate taxes) and the few others over the 15-year period, between 2004 and 2018. A significant portion of this amount came from the reviewed royalty and corporate taxes resulting from the changes in these fiscal rates between 2010 and 2018.

  • Fiscal rate appreciation from 3% to 5% for royalties and 25% to 35% for corporate taxes was the major policy impact in terms of additional revenues to government, compared to other measures. The estimation took cognisance of the stability agreement between the Government of Ghana and Newmont mining company on one hand and AngloGold Ashanti on the other hand as well as the renegotiated fiscal rate of AngloGold Ashanti and Gold Fields mining companies between 2017 and 2018. But the impact of the AngloGold Ashanti and Gold Fields fiscal rate changes in 2017 and 2018 were largely muted because they both still paid royalty at 3% due to the applicable market price/oz of gold within the period.
  • Other mineral revenue additions which came as a result of GHEITI’s advocacy also accrued to institutions other than central government. These include mineral ground rent and license/environmental permit fees. These additions were estimated at GH₵65,028,490 million. A total of GH₵32.4 million ground rent accrued to landowners while GH₵ 33.4 million accrued to state institutions such as the Minerals Commission and Environmental Protection Agency (EPA) as licenses/environmental permit fees.

Source: norvanreports
Tags: fiscal reformsGhana Extractive Industries Transparency Initiative (GHEITI)ground rentlicense feesproperty taxrevenue impactroyalty rate
No Result
View All Result

Highlights

Parliament Expresses Grief Over Death of Ministers, MP and 6 Others in Military Helicopter Crash

GSE Composite Index Up 46.51% YTD as Market Capitalization Hits GHS 147.91 Billion

Global Financial Bias Costs Africa $75 Billion Annually

GFA President.Set to Visit Gold Stars, Asante Kotoko, and Police Ladies to Strengthen CAF Campaigns

CHAN 2024: Tanzania and Burkina Faso Secure Important Wins

US Open Announce Record $90 Million Prize Money for 2025 Tournament

Trending

Features

Summary of Events Following Confirmation of Deaths of Defence and Environment Ministers, Six Others in Military Helicopter Crash

August 7, 2025

Summary of Events Following Confirmation of Deaths of Defence and Environment Ministers, Six Others in Military Helicopter...

FDI Rises to 3-Year High as Reforms Boost Investor Confidence

August 7, 2025

Togo is Flexing its Unrivaled Maritime Power

August 7, 2025

Parliament Expresses Grief Over Death of Ministers, MP and 6 Others in Military Helicopter Crash

August 7, 2025

GSE Composite Index Up 46.51% YTD as Market Capitalization Hits GHS 147.91 Billion

August 7, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.