The Chairman of the Mines and Energy Committee of Parliament, Mr. Emmanuel Gyamfi, has informed Parliament of some of the benefits that the country will derive from the tax waivers granted Anglogold Ashanti. He made the disclosures on the floor of Parliament this week during his presentation of a joint report by the Finance and Mines and Energy Committee on a Tax Concession Agreement to waive $259 million tax on Anglo-Gold Ashanti.
Mr. Emmanuel Gyamfi indicated that the Tax Concession Agreement will facilitate the redevelopment of Obuase Mines for a positive net contribution to Ghana’s economy.
Mr. Gyamfi stated that a total direct contribution to the economy of Ghana is projected to be US$5.3 billion over the life of the mine which, includes direct contribution to government revenues, local content as well as community investment.
He again informed the house that out of the total contribution to the economy, US$2.2 billion represents direct contribution to government revenue over the life of the Mine, representing about 21 percent of the total revenue pie over the life of the Mine.
On local Content and Employment, Mr. Gyamfi noted that “out of the total contribution to the economy, US$2.4 billion represent contribution to the economy through local content, representing 24 percent of the total revenue pie over the life of the Mine. The total persons employed directly at Obuase during operations by AngloGold Ashanti Ghana Limited (AGAG) and its subcontractors will be between 2000 and 2500, with up to an additional 1500 people being employed during the construction phase. The economic contribution to the economy through employment and other community investments represent about 7 percent of the total revenue pie over the life of the Mine”.
The Chairman reiterated that the Tax Concession agreement has a life span of seven years of which AngloGold Ashanti would be subject to corporate income tax.
Mr. Gyamfi however cautioned that if the agreement is rejected, government will lose potential revenue inflows that would be accrued from the redevelopment if the Mine and Obuase economy would continue to decline in development.
Meanwhile, the Minority in Parliament have a strong view that such agreement is detrimental to the economy.
The Minority Spokesperson, Cassiel Ato Forson in a rebuttal stated on the floor that granting a tax weaver to AngloGold Ashanti is discriminatory and it will only inure to the benefit of the mining company.
He further explained that there is no guarantee that Ghana will benefit from such agreement.
Source: GhanaJustice/S.Ayisi
