Government To Meet Mining Companies Over 10% Windfall Tax

The Finance Minister, Kwabena Duffuor, has told Citi Business News his outfit will soon meet mining companies in the country to clarify the mechanism for the payment of the 10% windfall tax announced by government last year. The windfall tax was introduced last year by government as one of the tax measures aimed at raking in more revenue for the country. In an exclusive interview with Citi Business News, Dr. Duffuor reiterated the need for mining companies to give Ghanaians what is due them from their operations, stating that the impending meeting will clarify all concerns on the mechanisms for payment of the windfall tax. The finance minister said: �The first tax is to reveal and renegotiate any part of the stability agreement signed between the Government of Ghana and any mining companies, the second task is to prepare a framework of procedures, conditions that will govern the stability agreement in a manner that maximises the flow of economic and social value to the country on a sustainable basis. �The third task is to redesign any existing agreement and or draft any new agreement to ensure that it significantly supports Ghana�s economic growth and development in terms of providing better financial returns, more social investment, and critical infrastructure and transparent in the manner of operations. � Meanwhile, Dr. Duffuor on Tuesday morning inaugurated a seven-member government team for the review and re-negotiation of the stability and mining agreements and this will be chaired by Professor Akilakpa Sawyerr. Stating what is expected of the team, Dr Duffuor said, �We are saying that a task that will show what we believe to be the profit over and above the cost of production. �So if the cost is 1,000 dollars per barrel and you are selling for 1,600 dollars, the owner of land must have a share in that profit. That is all we want. � The rest of the board members include Nana Dr. SKB Asante, Prof Newman Kwadwo Kusi, Professor Joshua Abor, Mr. Yaw Asante Boadi, Mrs. Dorothy Afriyie Ansah and Mrs Irene Damenya.