Accra, Ghana//-The share of the mining and quarrying sector in total direct domestic receipts mobilized by the Ghana Revenue Authority (GRA) has improved to GH¢4.172 billion in 2020 from GH¢4.03 billion in 2019.
The figure showed a 3.97 per cent increase in fiscal revenue outturn was primarily due to the increase in mineral royalty receipts, which was partially offset by the decline in the other fiscal streams attributable to the sector, according to the GRA.
Since mineral royalty is a function of both price and output, the significant appreciation in the yellow metal’s price drove its receipts upward by 38.20 per cent, from GH¢1.007 billion in 2019 to GH¢1.391 billion in 2020.
On the other hand, corporate income tax receipts and employee income tax (PAYEE) declined by 5.75 per cent and 12.85 per cent respectively, according to the Ghana Chamber of Mines 2020 annual report.
It added: “Whereas corporate income tax receipts reduced from GH¢2.269 billion in 2019 to GH¢2.139 billion in 2020, the sector’s PAYEE fell from GH¢736.256 million to GH¢641.868 million over the same period”.
The sector’s corporate income tax payments and PAYEE represented 17.3 per cent and 8.1 per cent of aggregate corporate income and PAYEE mobilized by the GRA.
The residual fiscal stream, which is formally classified as self-employed, plummeted from GH¢674,312 in 2019 to GH¢557, 868 in 2020, which amounts to a downturn of 17.2 per cent.
In view of the appreciation in the mineral royalty receipts, its share in the total fiscal receipts attributable to the mining and quarrying sector increased from 25.1 per cent in 2019 to 33.3 per cent in 2020.
Conversely, the corresponding share of corporate income tax decreased from 56.6 per cent to 51 per cent while that of PAYEE nosedived from 18.3 per cent to 15.4 per cent in the same period.
The contribution of the sector’s residual fiscal stream was unchanged at 0.1 percent between the two periods.
Speaking at the virtual 93rd Annual General Meeting (AGM) of the Ghana Chamber of Mines, the President of the Chamber, Eric Asubonteng, noted: “Overall, corporate income fiscal receipt maintained its position as the largest fiscal stream in the mining and quarrying sector”.
He added: “Notwithstanding, the modest expansion in its fiscal contributions, the share of the mining and quarrying sector in total direct domestic fiscal receipts was 18.1 per cent in 2020, which is significantly different from its outturn of 18.3 per cent in 2019”.
In terms of domestic revenue including grant, the 2020 fiscal payment of the mining and quarry sector was equivalent to 7.7 per cent and 7.5 per cent respectively. These shares were identical to the outturn of 7.7 per cent and 7.5 per cent in the preceding year, Mr Asubonteng said.
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