Dr. Mahamudu Bawumia, the New Patriotic Party’s (NPP) flagbearer, has promised to reduce the withholding tax on gold exports from 1.5% to 1% if he becomes president in the December 7 elections.
Currently, the withholding tax is 1.5% of the total value of gold exports, as stated by the Precious Minerals Marketing Company (PMMC).
Speaking at the opening of the Royal Ghana Gold Refinery in Accra on August 8, Bawumia expressed hope that lowering this tax will boost gold export volumes.
“A few years ago, the government reduced the gold export levy (withholding tax) from 3% to 1.5%.
The result of this is that after a sharp decline in gold export in 2021, the gold export volumes have been steadily recovering, with 2024 showing promising signs,” he said.
Bawumia praised the Bank of Ghana’s domestic gold purchase program, which has allowed the central bank to acquire 65.4 tons of gold worth $5 billion.
He also noted that reducing the withholding tax on gold exports would positively impact both this gold purchase program and the gold-for-oil initiative.
“Without this $5 billion our economy would have been in deep trouble. Fuel would have been a problem. You would probably see queues and shortages that other countries are experiencing. This programme has been really good for Ghana and I think it is very important.
“Given our strategic intention to realize higher production volumes to refine locally and support gold for oil and gold for reserve programmes for a stable currency,
I intend to reduce the withholding tax from 1.5% currently to 1% next year God willing, under my presidency,” Dr. Bawumia added.
