Small scale miners push govt to tax them

Small scale miners have accepted the need to pay royalty to the State, and have asked government to go beyond that to actually tax them.

Though small scale miners are making fortunes through mining, they do not pay any tax or royalty to the state. Following the appointment of Dr. Tony Aubynn as the Chief Executive of the Minerals Commission, he proposed that they should be made to pay royalties because some of them use heavy machinery which impact on the ecosystem.

At a day's dialogue in the first of a series of three Public-Private Dialogues on Mining Governance by the Australian Government, in partnership with the African Centre for Economic Transformation (ACET), the Artisanal and Small Scale Mining African Network wholeheartedly welcomed the idea and even want to give more to the state.

Edward Akuoko, Director of Policy and Research, Artisanal and Small Scale Mining African Network told myjoyonline.com Wednesday that the industry is viable and they want to be beneficial to the state.

“We are pushing for an agenda that some framework should be developed for small scale miners to be able to pay some taxes. No matter how small that would be, we think that it will give us the moral right as small scale miners in Ghana to be able to ask the state to support the industry,”

He however raised concern about how the monies, especially the royalty paid to the state would be expended.

“The most important thing is that we don't want to pay royalties and then the issue of management of those royalties also becomes another headache as being witnessed in the large scale mining companies.”

Mr. Akuoko said the network will work together with government to ensure that monies paid are effectively utilised for the benefit of the communities hosting the small scale miners.

Presently, small scale miners are not financially sound to carry out exploration like the mines, which he said is compounded by the reluctance of banks to lend to them.

“And so you have licensed Ghanaians owners who don't have money to work. So one of our arguments has been that the state should be able to bear the cost of exploration and demarcate them, bloc them, make them ready so that as a Ghanaian all that you have to do is that the state gives you the land, there is enough data as to the quantity of Gold in there and that becomes the basis to organize resources to start your operation.

“And so these are the support we think the state can offer, however, once you are not contributing to the state, it becomes difficult to also ask for support from the state.”

The decision has been welcomed by many. This is at a time government is frantically extending its tax network whilst some institutions and organisations play hide and seek with it.

Major Daniel Ablorh Sowah, a former Commissioner of the Internal Revenue Service told myjoyonline.com in order to effectively tax small scale miners, government would first have to standardize their operations.

“Their operations are not conventional. We need to engage them and assist them to standardize and then you can programme them in such a way that you can predict the outcome in some places. Because right now the way it is being done, for tax purposes for instance, if he comes and tells you that I earn GHc10 cedis, you have no way of challenging or knowing he earns GHc10.”

Major Ablorh Sowah, who is also the chairman of the Public Interest and Accountability Committee, further stated: “We should assist them strengthen their capacity to do this in a more formalized way so that there would be some amount of predictability and some amount of standard which can be measured and verified.

“In my view that will help the whole country and it will also actually enhance their own ability to do even better.”

Artisanal and Small Scale Mining African Network comprises different splinter groups including those engaged in mining gold, diamond, salt, and sand winning as well as – born small scale sector has splinter groups Story by Ghana | Myjoyonline.com| Isaac Essel | [email protected] | twitter @isaacessel