Pressure mounts on gov’t to reduce tax on gold

Gold buyers in the gold mining communities in Ghana are currently mounting intense pressure on the central government to, immediately make a reduction in 10 percent taxes slapped on gold transactions in the country.

The immediate reduction of 10 per cent on gold transactions, they stressed would go along away to avoid the smuggling of the precious commodity.

According to them, the revenue due the state is going down the drain due to the smuggling of the nation’s gold through Togo.

They pointed out that the smuggling has come about as a result of a 10% tax slapped on gold transactions recently.

They revealed that, gold buyers in Bibiani, Tarkwa and Prestea, mostly Indians were no longer charging the new 10% tax on the purchase of gold because gold dealers were not willing to pay the tax component on the transactions to government.

Speaking in an interview with Joy FM, the Chief Executive Officer (CEO) of Okobeng Mining Company, Nana Okobeng Amponsah noted that he was recently confronted with a situation where he had to pay in excess of 100,000 cedis as tax on a 1,000,000 cedi worth of gold he sold to an Indian gold dealer.

Mincing no words, Mr. Amponsah called on the government to stop the activities of these illegal gold buyers.

According to him, the gold dealers did not give any receipt to cover the tax deductions on the transactions.

He therefore suspected that, the Indian gold dealers were stealing from the state through the imposition of the tax and subsequent enforcement by such dealers.

“These people are not licensed gold dealers in the first place so why are they collecting taxes on gold shipments on behalf of the country,” he queried.

Nana Okobeng asserted that he was shocked that another Indian gold buyer asked him to pay 3% tax on the gold instead of the stipulated 10 per-cent.

Gold dealers mostly in Tarkwa, Prestea and Bibiani are asking government to ensure proper documentation to be issued on the recent 10% taxes being charged.

When asked why they do not sell their gold directly through the Precious Minerals Marketing Company (PMMC) but rather through Indian shops, Nana Okobeng said that, the company must establish offices in the districts to avert the dangers associated with the transaction and transportation of gold to the market.

Source: Ghana/ Matters with Fre

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