The implementation of a 3% withholding tax by the Ghana Revenue Authority (GRA)has been unsuccessful, according to a study by the Africa Centre for Energy Policy (ACEP).

It said the report shows that 95% of small scale miners sampled said they never received tax certificate for 3% withholdings payments to gold buyers.

This comes on the heels of a leaked document from the Precious Minerals Marketing Company (PMMC) revealing that since the introduction of the 3% withholding, the purchase and export of gold has witnessed a downward dive.

The Company has complained to the Finance Ministry over the 3% withholding tax on gold trade.

It argued that the withholding tax on gold purchase has become a major issue of concern among its stakeholders including foreign and local gold buyers who patronize their laboratory. It added that the traders make a meagre profit after paying the withholding tax and it has affected government revenue.

The document indicated that since the introduction of the 3% tax on gold purchase and export, the operations of PMMC has seen a downward dive.
The exporters are complaining that they are not getting the commodities to buy because the producers are selling their commodities to those who do not demand the 3% withholding tax.

This development also means government is losing revenue as the gold producers and buyers are either storing or smuggling their commodities through illegal routes.