Sunday, 13 April 2014

Mining industry revenue collection decline

The Ghana Revenue Authority’s collections from the mining industry declined from about US$1.5 billion in 2012 to US$1.1 billion in 2013, representing a fall of about 24 percent.

This was attributed to the depressed price of the metal had a toll on government revenue as well as the country’s balance of payment position.

Last year, the average price of gold dropped by an estimated 15 percent to US$1,411 per ounce. Although the price of gold seems to have stabilized since the begging of the year at a cumulative average of about US$1,293 per ounce, pundits expect the price of the precious metal to remain around US$1,300 per ounce in 2016.

Should this expectation happen, the consequence on the country’s economy would be dire said, Sulemanu Koney, Director of Analysis, Research & Finance at the Chamber of Mines at the fifth   mining for development forum held in Accra.

Mr. Koney who speaking under the topic Revenue Utilisation Amidst Declining Metal Prices, said government’s receipts from the mining industry, which is mainly from corporate taxes and royalties, are highly dependent on the price of gold.

He explained that the prevailing situation requires that the country optimizes the utilization of its mineral revenue in a manner that yields the best returns and impacts, both at the national and sub-national level.

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