Accra, Ghana — MININGREVIEW.COM — 25 November 2011 – The Ghana Mineworkers’ Union (GMWU) has commended the government for taking what it calls “bold steps to enhance the revenue base of the country.”
Revealing this in a statement issued here, the general secretary of the GMWU Prince Ankrah said the union was particularly happy with the introduction of the 10% windfall profit tax imposed on mining companies in the 2012 budget, but added that it hoped the government would be resolute in its successful implementation.
The government has also raised corporate tax for mining companies from 25 to 35%. In the view of the GMWU, this action clearly demonstrates government’s bold resolve to generate enough revenue from the mining sector for the country’s development goals.
The GMWU said that while pursuing these policies, government should be firm and demand that players in the mining industry were honest and came clean when making their case about cost implications and their impact on operations.
This would prevent the situation where multinational mining companies tend to make huge profits at the expense of Ghana’s overall development agenda. The union also proposed that an engagement process aimed at increasing government’s stake in various mining companies commence soon.
The union went on to say that acknowledgement in the 2012 budget that mining was one of the leading sectors in the country, yet its economic and social benefits had not met national expectations, was indeed factual. This meant drastic measures were required to change this sad state of affairs, it added.