The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has announced that the government is reviewing the Value Added Tax (VAT) component of the tax structure affecting exploration costs for prospective mining companies.
This announcement was made during the opening ceremony of the 2024 West African Mining and Power Conference and Exhibition (WAMPOC / WAMPEX).
Jinapor noted that this initiative aims to reduce the tax burden on natural mineral resource exploration, thereby making the sector more attractive for foreign direct investments.
“We are, for example, working with the Ghana Revenue Authority (GRA) and the Ghana Chamber of Mines, under the guidance of the Government’s Economic Management Team, to explore the best framework for treating critical imposts such as Value-Added Tax (VAT) on exploration. If properly structured, it will reduce the financial burden on exploration companies, making it more attractive to invest in exploration, while safeguarding the nation’s interest,” he stated.
This move is part of broader efforts by the government to create a favorable environment for investment in the exploration of new mineral deposits in Ghana. Jinapor emphasized the importance of incentivizing investors to undertake exploration activities, which are crucial for generating the necessary revenue for the sector.
“We aim to unlock the full potential of Ghana’s mineral wealth, create employment opportunities, and stimulate economic growth in the mining sector and beyond,” he added.
The 2024 West African Mining & Power Conference and Exhibition (WAMPOC / WAMPEX), a three-day event, brings together key private and public stakeholders to discuss sustainable investments in the mining and power industries across West Africa.
The conference features technical workshops and extended B2B networking opportunities, with participation from over 80 exhibitors representing 16 countries.
The theme for this year’s conference is “The Mining and Power Hub: Driving Sustainable Investment Opportunities in West Africa.”
