PROPOSED LAW ON MANAGEMENT OF MINERALS REVENUE

 

Following the example of the Petroleum Revenue Management Law and the discipline introduced into the use of petroleum revenues, Ghana requires a similar law to regulate use of mineral revenues. This is also a call advocated by the African Centre for Energy Policy (ACEP). 

 

The lack of a fiscal framework for mineral revenue management and an investment and savings strategy, as well as non-existence of a comprehensive accounting basis, have over the years accounted for the poor management of minerals revenue in Ghana. The situation means that Ghana has failed to translate the country’s mineral wealth into tangible development in the lives of the citizenry.

The principles of the proposed law are protecting macroeconomic stability, ensuring fairness in the distribution of mineral wealth benefits, sustaining the fiscal contributions of mining after depletion, and investing mineral revenue in productive areas and good governance.

There is also the need to create a mineral revenue holding fund which should be a transit fund from which the mineral revenues will be shared between the central government and mining communities in a ratio of 70:30.

Ghana, the ninth largest world producer of gold, has been mining for than a century and has within its extractive industry portfolio other minerals like manganese, iron ore and bauxite. In 2012, the mining industry was the number one taxpayer and the highest contributor to the Ghana Revenue Authority’s domestic collection with GHC1.46billion, representing 27% of total direct taxes in the year.   


PROPOSED LAW ON MANAGEMENT OF MINERALS REVENUE

 

Following the example of the Petroleum Revenue Management Law and the discipline introduced into the use of petroleum revenues, Ghana requires a similar law to regulate use of mineral revenues. This is also a call advocated by the African Centre for Energy Policy (ACEP). 

 

The lack of a fiscal framework for mineral revenue management and an investment and savings strategy, as well as non-existence of a comprehensive accounting basis, have over the years accounted for the poor management of minerals revenue in Ghana. The situation means that Ghana has failed to translate the country’s mineral wealth into tangible development in the lives of the citizenry.

The principles of the proposed law are protecting macroeconomic stability, ensuring fairness in the distribution of mineral wealth benefits, sustaining the fiscal contributions of mining after depletion, and investing mineral revenue in productive areas and good governance.

There is also the need to create a mineral revenue holding fund which should be a transit fund from which the mineral revenues will be shared between the central government and mining communities in a ratio of 70:30.

Ghana, the ninth largest world producer of gold, has been mining for than a century and has within its extractive industry portfolio other minerals like manganese, iron ore and bauxite. In 2012, the mining industry was the number one taxpayer and the highest contributor to the Ghana Revenue Authority’s domestic collection with GHC1.46billion, representing 27% of total direct taxes in the year.   


PROPOSED LAW ON MANAGEMENT OF MINERALS REVENUE

 

Following the example of the Petroleum Revenue Management Law and the discipline introduced into the use of petroleum revenues, Ghana requires a similar law to regulate use of mineral revenues. This is also a call advocated by the African Centre for Energy Policy (ACEP). 

 

The lack of a fiscal framework for mineral revenue management and an investment and savings strategy, as well as non-existence of a comprehensive accounting basis, have over the years accounted for the poor management of minerals revenue in Ghana. The situation means that Ghana has failed to translate the country’s mineral wealth into tangible development in the lives of the citizenry.

The principles of the proposed law are protecting macroeconomic stability, ensuring fairness in the distribution of mineral wealth benefits, sustaining the fiscal contributions of mining after depletion, and investing mineral revenue in productive areas and good governance.

There is also the need to create a mineral revenue holding fund which should be a transit fund from which the mineral revenues will be shared between the central government and mining communities in a ratio of 70:30.

Ghana, the ninth largest world producer of gold, has been mining for than a century and has within its extractive industry portfolio other minerals like manganese, iron ore and bauxite. In 2012, the mining industry was the number one taxpayer and the highest contributor to the Ghana Revenue Authority’s domestic collection with GHC1.46billion, representing 27% of total direct taxes in the year.   


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