Mining companies in Ghana paid $360m corporate tax in 2011 – Report

The mining companies operating in Ghana are said to have paid an amount of $360 million in corporate tax to the government in 2011.

A Ghana News Agency report cites Dr Toni Aubynn, Chief Executive Officer of the Ghana Chamber of Mines, as saying that the $360 million corporate tax represents 38.26 per cent of the total company tax collected in the country in 2011.

About 80 per cent of all mineral proceeds are retained by the central government and less than 10 per cent goes to mining communities, he was cited by the report to have said.

Arguing that mining had been making huge contributions to the country, he said, it is sad that people would say they have not seen the benefit of mining to the country.

According to Dr. Aubynn these comments were perhaps based on the exaggerated expectations people have about mining companies, emphasising that the sector is the greatest contributor to taxes and GDP.

Dr Aubynn said the absence of a national mining vision and policy over the years and the paltry amount of royalties government transfers to the mining communities did not augur well for the development of infrastructure in mining communities, the report said.

He said since mining revenue and royalties goes directly into the Consolidated Fund, there is no effective tracking of what the revenue from mining is spent on.

He said, last year mining contributed about $540 million to the Ghana Revenue Authority representing 27.61 per cent of total domestic revenue.

The sector paid $360 million in corporate tax, representing 38.26 per cent of the total company tax collected in 2011, he said, according to the report.

Dr Aubynn said the sector also voluntarily contributed about $27 million to the communities within which they operate.

By Emmanuel K. Dogbevi