Ghana: Reduction in mining royalty rate to 5%
Description
The government of Ghana has reduced the mining royalty rate to 5% eventhough it had earlier on in the 2010 budget statement proposed an increase in the rate ranging from 3% to 6%.
The amendment was assented by the president on 17 March 2010 and gazetted on 19 March 2010. The amended section now reads " A holder of a mining lease, restricted mining lease, or small scale mining license shall pay royalty in respect of minerals obtained from its mining operations to the Republic at the rate of 5% of the total revenue earned from minerals obtained by the holder."
Unconfirmed media reports say the fixed rate of 5% was reached after consultations with affected companies who could have invoked their right of exclusion under their stability agreements.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 02/05/2010
Implemented: Yes
Date of inception: 19 Mar 2010
GTA Evaluation: Green
Related Measures:
Source:
Government Response: Manteaw, S. 2010. 'Ghana: Govt Reduces Mining Royalty Rate.' 30 April. http://allafrica.com/stories/201004300679.html
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