Friday, July 20, 2018
‘Mentor youth to discover talents’
‘Mentor youth to discover talents’: ‘Mentor youth to discover talents’
Thursday, July 19, 2018
Strategise to address gender inequalities in agric sector
Strategise to address gender inequalities in agric sector: A study on the impacts of climate variability has recommended that government policy addressing climate change in the agriculture sector should identify and implement options for each unique climate distress event that will reduce variability of the different gender groupings.
Monitoring of oil projects in B/A exposes low supervision
Monitoring of oil projects in B/A exposes low supervision: Monitoring of oil projects in B/A exposes low supervision
Pay mining royalties monthly — Steve Manteaw
Pay mining royalties monthly — Steve Manteaw: Pay mining royalties monthly
— Steve Manteaw
— Steve Manteaw
Pay mining royalties monthly — Steve Manteaw
Pay mining royalties monthly — Steve Manteaw: Pay mining royalties monthly
— Steve Manteaw
— Steve Manteaw
Nation loses US$1.4bn yearly - Illicit financial flows in extractive sector to blame
Nation loses US$1.4bn yearly - Illicit financial flows in extractive sector to blame: Ghana on the average loses US$1.4 billion annually in the natural resources sector to illicit financial flows (IFFS), a report has indicated.
Coalition slams govt over AngloGold agreement
Coalition slams govt over AngloGold agreement: The National Coalition on Mining (NCOM), has described as illegal the fiscal and development agreement between Ghana and AngloGold Ashanti (Ghana) Limited, and further asserted that it will remain, even after Parliament has ratified it.
PPP can boost agric productivity — Study
PPP can boost agric productivity — Study: PPP can boost agric productivity — Study
Minerals Commission advocates integrated approach to artisanal mining
Minerals Commission advocates integrated approach to artisanal mining: Minerals Commission advocates integrated approach to artisanal mining
Blueprint for cattle ranches ready
Blueprint for cattle ranches ready: Blueprint for cattle ranches ready
Friday, July 13, 2018
Solidaridad to support responsible mining
Solidaridad to support responsible mining: Solidaridad to support responsible mining
Tuesday, July 03, 2018
Comply with mineral devt laws
An expert in the extractives sector, Mr Emmanuel Kuyole, has criticised the country's persistent and deliberate violation of tax laws during the signing of mineral development agreements.
He said the country had a lot of laws in the mining, oil and gas sectors, but did not always comply with them when it came to signing extractive sector agreements.
Workshop
My Kuyole, the Executive Director at the Centre for Extractives and Development, Africa (CEDA), noted that the 35 per cent corporate tax for the mining sector was sometimes reduced to 32 per cent during the development agreements, while some were exempted from paying local taxes.
"We violate the laws and when we even enact some specific legislations, we don't follow to the letter," he stated in an interview at a workshop on the "Need for Ghana to have a Mining Revenue Act" at Koforidua in the Eastern Region.
The Institute of Financial and Economic Journalists (IFEJ), in collaboration with the German Development Corporation (GIZ), organised the workshop for selected journalists from across the country.
Other challenges
Mr Kuyole indicated that there were a lot of give-aways during contracting in the mining sector, and that the revenue due the country had become a function of some fiscal terms in some of the agreements.
He said there was too much focus on taxes, whereas an analysis showed there were a lot of opportunities the sector presented to the economy.
"The government tends to focus so much on the tax revenue to the neglect of local content, even though we can use that to build linkages with the rest of the economy,” he explained.
Mining sector to growth
The mining and quarry sector contributed GH¢1.3 billion and GH¢1.65 billion in 2015 and 2016 respectively.
The country recently granted tax concessions to Anglogold Ashanti. Therefore, the company will not be paying royalties at the current five per cent but three per cent, and has a US$177 million waiver on imported items due to stability agreements.
Mining for development
The Minerals Development Fund Act, 2016 (Act 912) was passed to provide financial resources for the benefit of mining communities and for related matters.
According to Mr Kuyole, there was a consistent violation because till date no regulations had been developed to back the law, although it was required within a year after it was passed.
“There is no board, and the 20 per cent community development scheme that is supposed to be sent to mining communities have not been sent.
“Since 2011, consistently no disbursement has been made,” he pointed out.
In 2017/2018, the Ministry of Finance has decided to apply the capping law and capped the Minerals Development Fund to 12.5 per cent instead of the 20 per cent.
"So far, only 3.2 per cent out of the 12.5 has been disbursed. When we do this, there is no way we are going to see development in the mining communities because the resources needed for their development are not being sent," he stated.
Mr Kuyole also indicated that there had been no comme nsurate development in the mining communities after all the years of mining, and so it was important not to give away a lot during the signing of agreements.
"We should ensure that even what is currently allocated to the mining communities is sent, while we follow through to ensure they are used for important projects that will bring about improvement in the lives of the people," he added.
The Africa Economic Outlook report for 2018 has recommended urgent tax reforms in the mining sector which holds great potential for revenue generation in African countries.
He said the country had a lot of laws in the mining, oil and gas sectors, but did not always comply with them when it came to signing extractive sector agreements.
Workshop
My Kuyole, the Executive Director at the Centre for Extractives and Development, Africa (CEDA), noted that the 35 per cent corporate tax for the mining sector was sometimes reduced to 32 per cent during the development agreements, while some were exempted from paying local taxes.
"We violate the laws and when we even enact some specific legislations, we don't follow to the letter," he stated in an interview at a workshop on the "Need for Ghana to have a Mining Revenue Act" at Koforidua in the Eastern Region.
The Institute of Financial and Economic Journalists (IFEJ), in collaboration with the German Development Corporation (GIZ), organised the workshop for selected journalists from across the country.
Other challenges
Mr Kuyole indicated that there were a lot of give-aways during contracting in the mining sector, and that the revenue due the country had become a function of some fiscal terms in some of the agreements.
He said there was too much focus on taxes, whereas an analysis showed there were a lot of opportunities the sector presented to the economy.
"The government tends to focus so much on the tax revenue to the neglect of local content, even though we can use that to build linkages with the rest of the economy,” he explained.
Mining sector to growth
The mining and quarry sector contributed GH¢1.3 billion and GH¢1.65 billion in 2015 and 2016 respectively.
The country recently granted tax concessions to Anglogold Ashanti. Therefore, the company will not be paying royalties at the current five per cent but three per cent, and has a US$177 million waiver on imported items due to stability agreements.
Mining for development
The Minerals Development Fund Act, 2016 (Act 912) was passed to provide financial resources for the benefit of mining communities and for related matters.
According to Mr Kuyole, there was a consistent violation because till date no regulations had been developed to back the law, although it was required within a year after it was passed.
“There is no board, and the 20 per cent community development scheme that is supposed to be sent to mining communities have not been sent.
“Since 2011, consistently no disbursement has been made,” he pointed out.
In 2017/2018, the Ministry of Finance has decided to apply the capping law and capped the Minerals Development Fund to 12.5 per cent instead of the 20 per cent.
"So far, only 3.2 per cent out of the 12.5 has been disbursed. When we do this, there is no way we are going to see development in the mining communities because the resources needed for their development are not being sent," he stated.
Mr Kuyole also indicated that there had been no comme nsurate development in the mining communities after all the years of mining, and so it was important not to give away a lot during the signing of agreements.
"We should ensure that even what is currently allocated to the mining communities is sent, while we follow through to ensure they are used for important projects that will bring about improvement in the lives of the people," he added.
The Africa Economic Outlook report for 2018 has recommended urgent tax reforms in the mining sector which holds great potential for revenue generation in African countries.
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