Chief Executive Officer (CEO) of the Ghana Chamber of Mines, Dr. Tony Aubynn, says government’s 5% corporate tax coupled with falling gold prices on the international market is likely to result in significant job losses in the sector.

According to him, it is not only jobs that would be lost, but every aspect of the business operation of mining companies would have to be reviewed to ensure profitability.

“Once prices tend to reduce, and the projection is that they are going to reduce more, and once the cost [of doing business] keeps going up, the rational thing to do is to review all your operations,” said Dr Aubynn.

The mining companies also said they may have to suspend agreements with some contractors due to the high cost of doing business in the country currently.

Parliament this month approved the National Fiscal Stabilisation Levy (NFSL) to enable government generate more revenue for economic expansion. Per this levy, mining firms will now be required to pay 5% on profit before tax.

Also all businesses that depend on mining would also be affected, Dr Aubynn said.

Earlier this week, Chief Executive Officer of the Private Enterprise Federation (PEF) warned of dire consequences for Ghana’s economy following hikes in taxes brought about by the NFSL.

Nana Osei Bonsu said Small Scale Enterprises in the country are likely to collapse in the coming weeks whilst others will lay off workers as a result of the levy.

The PEF CEO said that it was essential for government to explore cost cutting measures first to reduce the funding gap before bringing in new revenue measures such as the stabilisation tax.