The mining sector is an important segment of the Ghanaian economy and has played a significant role in the country’s socioeconomic development since the Colonial period yet government give in tax holidays to foreign companies which records have proven is affecting the country’s revenue generation.
This tax holiday given to major foreign companies in the extractive sector are not only enjoying tax exemptions, their presence per Peace News reports reveal how it is threatening the local companies.
In an interview with an International Business Consultant, Economist Dr Shaft Boamah on how to ensure our extractive sector revenue increases; he suggested that government adjust the tax law.
He also stressed on the need for government to make the law flexible for the local companies to enjoy certain benefit in order to expand their operations international.
He added that our Politicians are to be blamed for not achieving the targeted revenue in the extractive industry because of their own parochial interest with these foreign companies.
He further added that the key to prudent management of the country’s extractive resources are the principles of transparency, accountability and the democratic participation of citizens in decisions of tax exemption choices that have to be made in respect of transactions in the mining sector.
Source: Deborah Agyei Amponsah/ Peacefm
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