Anglogold Ashanti and Newmont Ghana will not have to pay the increased tax rates for mining firms proposed by government in the 2012 budget. This is because of a longstanding stability agreement the two have signed with government. Joy Business’ George Wiafe however reports the state is also not giving up negotiations with the mining firms. This is to get them to accept a review of some of the clauses contained in the agreement. Government is increasing mining firms’ corporate tax from 25 to 35 percent. It is also proposing to impose a 10 percent tax on their windfall profits. The windfall tax appears to be government’s attempt to cream off part of the profits the firms are enjoying as a result of the high prices gold has seen in recent times. The stability agreements signed by Anglogold and Newmont however bars government from varying to their disadvantage the conditions under which they operate in the country. In effect, the percentage of taxes and royalties they pay will remain unchanged until the expiration of the agreement. Government, due to mounting pressure is however beginning to re-engage the firms to hopefully renegotiate some of the clauses especially with regard to mining leases, royalties and taxes. Tax policy advisor at the Finance Ministry, Dr. Edward Larbi Siaw however explains government will stick to the agreements until it succeeds in its negotiations. He, however, does not discount the power of public opinion in the re-engagement process. Even though government is eager to apply the ten percent windfall tax on the profits of the other firms, it is yet to clearly spell out how this is going to be implemented.