The Finance Ministry has justified its decision
to sign a Stability Agreement with mining firm,
Government through parliament last month
announced its decision to allow Goldfields-
Ghana to pay a fixed tax and royalty rate for
the next 11 years.
This decision has, however, not gone down
well with some civil society groups and even
the committee that was established to review
the agreement granted mining firms like,
Anglogold and Newmont-Ghana.
But Deputy Finance Minister Ato Forson tells
JOYBUSINESS there was no way government.
could have declined the agreement.
“As soon as you set one precedent, in the case
of Ghana, like Newmont, others doing similar
investments will ask for similar equality.
Failure to do it will mean they are going away
and that is why I said that in taxing petroleum
or mineral resources in the extraction
industry, you really will have to look at what
your sub-region is doing,” Mr. Forson said.
He explained that others are benchmarking and
failure to do it will mean that things will not
be as they were which means taking an
investment or a financial decision.
According to Mr. Forson, they are taking a
decision that would benefit the community as
a whole and not necessarily to look at revenue
“So you don’t only look at how much you get
in terms of how much you are going to benefit,
the impact on job, creation, the impact on
growth, add them and then form an opinion.
So if you are to dwell on one side you make a
mistake,” he said.
According to the committee that is reviewing
the stability agreements, the one given to
Goldfields, could result in the country losing
about $26 million annually.
Source : joynews