The Ghana Chamber of Mines has urged the government to remove Value Added Tax (VAT) on mineral exploration activities, describing the levy as a major disincentive to discovering new mineral resources and sustaining future production.
“The relevance of exploration in ensuring a pipeline of viable projects can not be overemphasized. It is the single most critical activity that guarantees continued mineral production,” Michael Edem Akafia, President of the Chamber, said.
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Akafia noted that exploration is the “lifeblood of mining” and fundamental to the long-term viability of the industry. He warned that the imposition of VAT on exploration-related expenses undermines efforts to replenish mineral reserves and secure future investments.
The Chamber is advocating for tax incentives to spur more exploration, particularly as global capital becomes increasingly selective and sensitive to regulatory environments.
Akafia emphasized the need for a favorable investment climate to attract exploration funding and ensure Ghana’s continued position as a mining hub in Africa.
