Government bans local taxes on illegal mining equipment

The government has directed all Metropolitan, Municipal, and District Chief Executives (MMDCEs) to immediately stop taxing illegal miners. This order applies to levies collected from changfan machines used in illegal mining, commonly known as 'galamsey'. The government warned that any official who ignores this directive will face severe penalties.

Felix Kwakye Ofosu, Minister for Government Communications, stated that this decision follows investigations into what was called the "Tax for Galamsey" exposé. This investigation showed that some district assemblies were collecting money from illegal mining operators.

Preliminary findings from the government's inquiry indicate that taxing changfan machines has been a long-standing practice. Many district assemblies used this method to generate revenue. An example is the District Chief Executive for Amansie Central District, Emmanuel Obeng Agyeman, who will not be sanctioned for past actions due to this established convention.

However, the situation has now changed. Mr. Ofosu Kwakye emphasized that any MMDCE who continues to tax illegal mining operations after this warning will face strong sanctions. The government plans to hold an orientation for all MMDCEs. This program will guide them on legal ways to generate revenue without supporting illegal activities.

This directive is part of the government's broader efforts to control illegal mining. Illegal mining continues to threaten Ghana's forests and water bodies. This policy change will affect the revenue streams of several district assemblies that relied on these informal taxes.