The Chartered Institute of Taxation, Ghana (CITG) says illegal small-scale mining, popularly known as galamsey is robbing the country of significant revenue through tax evasion.

In a statement issued on Thursday, the Institute explained that it is due to unaccounted gold exports that illegal miners engage in.

According to the CITG, the official records of gold exports in Ghana are sometimes inconsistent with those of other countries, an indication that some exports are done illegally.

To highlight this, the CITG cited that in 2018, President Akufo-Addo received a report from the government of the United Arab Emirates through a Senior Minister which indicated that $5 billion worth of gold imports were illegally done.

“President stated that the Senior Minister, on an official visit to Dubai in the UAE, received some praise from people who said: ‘last year we [UAE] recorded US$7 billion worth of Gold imports from Ghana’ but official records from Ghana stood about US$2 billion for Gold exports to UAE – emphasis US$7 billion to UAE alone which is more than the total Gold exports of US$5.79 billion for 2017 per BOG Annual Report.”

It further noted that “under the Ghanaian law, the illegality of an activity does not exempt it from taxation”

In the bid to ensure that the revenue from galamsey is retrieved, the Institute advised that a holistic approach be adopted to curb the menace.

“Adopt a holistic approach, targeting not only the miners but also the entire supply chain, including financiers and those profiting from the illegal trade in gold,” portions of the report read.

CITG also called on all regulatory bodies to identify those who engage in illegal transactions that have resulted in tax evasion while stating that being able to curb galamsey is a sure way to safeguard Ghana’s revenue.

“The CITG calls for immediate and coordinated action from all stakeholders (Government, Chiefs, IMF, World Bank etc) to curb illegal mining and its associated tax evasion.”

The CITG further urged that surveillance and patrol at galamsey-prone areas should be increased and strict penalties for culprits and tax evasion by the miners should be enforced to curb tax evasion through illegal mining.