Mining firms cry over new taxes
 
Posted on: 2011-Nov-18        Joy fm
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Mining firms have described the proposed increase in corporate tax and new tax on their profits as inimical to their operations.

Finance minister Dr. Kwabena Duffour announced a 10 percent increase in corporate taxes and 10 percent windfall profit tax for mining firms beginning next year.

But the Chief Executive of the Ghana Chamber of Mines, Dr. Tony Aubyn told Joy Business this is worrying for the companies because the industry is currently over taxed.

“You must be careful not to confuse the fact that gold prices have gone up to mean that profits have necessarily gone up because other input prices have also gone up; some of them have even gone up higher than the rate at which gold prices have gone up,” stated.

In addition to this, he said the mining companies were also investing heavily on especially communities in which they operate through their Corporate Social Responsibility.

Traders also say the 2012 budget failed to meet their expectations of a reduction in taxes and duties on items imported.