Chamber of Mines calls for removal of VAT on mineral exploration to boost investment

The Ghana Chamber of Mines has urged the government to remove Value Added Tax (VAT) on mineral exploration activities, describing the levy as a major disincentive to discovering new mineral resources and sustaining future production.

President of the Chamber, Michael Edem Akafia, noted that exploration is the “lifeblood of mining” and fundamental to the long-term viability of the industry.

He warned that the imposition of VAT on exploration-related expenses undermines efforts to replenish mineral reserves and secure future investments, especially at a time when Ghana seeks to consolidate its position as a mining hub in Africa.

“The relevance of exploration in ensuring a pipeline of viable projects can not be overemphasized. It is the single most critical activity that guarantees continued mineral production,” Akafia said, while delivering his presidential address at the Chamber’s 97th Annual General Meeting in Accra on May 30, 2025.

The Chamber is advocating for tax incentives to spur more exploration, particularly as global capital becomes increasingly selective and sensitive to regulatory environments. While countries such as South Africa and Morocco have seen increased exploration budgets, others, including Ghana’s peers in West Africa, have suffered cuts due to policy and investment challenges.

Source: Citi Business News