public finance

Districts ordered to stop taxing illegal mining equipment

President John Dramani Mahama has instructed Metropolitan, Municipal, and District Assemblies (MMDAs) to stop taxing equipment used in illegal mining. He stated that taxation of illegal activities undermines the fight against 'galamsey'. The directive follows investigations revealing widespread collection of revenue from small-scale mining machinery by assemblies. The government plans to educat...

StatsGH Reporter ·
Districts ordered to stop taxing illegal mining equipment

President John Dramani Mahama has directed all Metropolitan, Municipal, and District Assemblies (MMDAs) to immediately stop collecting taxes on equipment linked to illegal mining. This instruction aims to strengthen the national effort against 'galamsey', which is illegal small-scale mining.

Investigations revealed that many assemblies were collecting revenue from machinery used in small-scale mining, both legal and illegal. President Mahama stated that taxing illegal activities, such as using 'chamfer' machines, legitimizes them and hinders efforts to stop them. He highlighted that this practice was common across various gold mining districts.

The President emphasized that revenue cannot be generated from unlawful operations. He noted that 'chamfer' machines are illegal and should not be taxed. Directives have been issued through the Ministry of Local Government and the Presidency to halt this practice. District officials will receive orientation on appropriate ways to collect internally generated revenue.

Additionally, enforcement measures against illegal mining are being strengthened. Security agencies have been ordered to destroy any identified illegal mining equipment. Measures are also being put in place at ports to prevent the importation of components used to assemble new illegal mining machinery. This dual approach aims to remove existing illegal equipment and stop new ones from entering the country.

Tags: mining galamsey taxation local government economic crime

Source: StatsGH — Ghana's data-driven news platform