Ghana Scraps VAT on Mineral Exploration to Revitalise Mining Investment

Ghana Abolishes 15% VAT on Mineral Exploration to Attract New Mining Investment in 2026 Budget

Ghana will eliminate value-added tax (VAT) on mineral exploration and reconnaissance activities to stimulate new investment in its mining sector, Finance Minister Cassiel Ato Forson announced during the presentation of the 2026 national budget.

The move is part of the country’s broader effort to revive a sector that has struggled to attract significant greenfield projects for more than two decades.

The 15% VAT was introduced 25 years ago as part of wider fiscal reforms and has long been criticised for increasing upfront costs for exploration companies, particularly those engaged in high-risk, early-stage activities such as drilling and assay work. Industry associations, including the Ghana Chamber of Mines, have argued that the levy undermined Ghana’s competitiveness compared with neighbouring countries such as Côte d’Ivoire, Burkina Faso and Kenya, which exempt exploration from VAT.

Forson said scrapping the tax would “revive investor confidence, stimulate greenfield activity, and ensure the long-term sustainability of the country’s mining sector.” He added that the measure also forms part of a broader VAT review aimed at strengthening responsible mining practices and reducing unregulated prospecting, which has contributed to environmental degradation in forests and waterways.

Small-Scale Mining Drives Record Gold Output

The policy shift follows a surge in Ghana’s small-scale gold exports, which reached a record 81.7 metric tonnes valued at approximately $8.1-billion between January and October.

For the first time, this exceeded large-scale mining exports, which totalled 74.1 tonnes valued at $6.6-billion. Ghana had targeted overall gold production of about 144.5 tonnes for 2025.

Forson said the increased output reflects successful regulatory reforms that have formalised artisanal mining activities and strengthened export controls.

The Ghana Chamber of Mines welcomed the VAT removal, noting that it had long hindered the development pipeline for new mining projects. “VAT on exploration negatively affected our competitiveness as a mining jurisdiction and was a clog on the pipeline of projects,” said Chamber president Michael Akafia.

Ghana’s mining industry, which contributes more than a third of the nation’s export revenues, is dominated by gold, along with bauxite and manganese. As part of ongoing sector reforms, the government recently commenced a comprehensive audit to maximise state revenue.

Major operators in the country include Newmont, AngloGold Ashanti, Gold Fields, Perseus Mining, and China’s Zijin and Cardinal Namdini.