The Minority in Parliament has questioned the government’s decision to grant a $300 million tax concession to AngloGold Ashanti (AGA)
Under the agreement, per every ounce of gold that would be extracted,
Parliament also ratified a tax concession agreement between the government and
Commenting on the development in an interview, the Minority Spokesperson on Finance, Cassiel Ato Forson, said the deal was badly negotiated.
He said Ghana would lose in excess of $300 million.
“The intention is that AGA is going to invest $880 million to revamp the Obuasi mines. They are saying that the project will not be viable until the government of Ghana decides to grant them a tax concession worth $259 million dollars,” he said.
But Mr. Ato Forson said the concessions will actually exceed the $258 million stated.
“…Because in the agreement, they are reducing corporate income tax that is supposed to be for mining companies which
The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah,
He explained that this was an improvement over similar agreements signed in the past between government and multinational mining firms.
The investment is supposed to yield a return of about $5 billion over the next two decades.”
“Having compared this to existing agreements and the investments to be made and the return thereof, I have no doubt in my mind that parliament has discharged its duties perfectly,” he said.
The first gold