The Minister for Finance, Dr Cassiel Ato Forson, has defended the government’s decision to introduce a sliding-scale tax regime for Ghana’s extractive industries.

He said the policy was designed to ensure that the Ghanaian people, as owners of the country’s natural resources, receive a fair share of the economic benefits generated from oil and gold.

Dr Ato Forson explained that while investors and shareholders are entitled to returns on their investments, the state must also capture a portion of the excess profits generated from the exploitation of natural resources.

“It is a fact that shareholders must benefit, but it’s also a fact that the owners of the resource must also benefit,” he said.

Speaking at a press briefing in a video posted on his social media handle on Wednesday, September 2, the Finance Minister said the introduction of the sliding-scale regime was informed by the need to recognise the costs incurred by companies while ensuring the state benefits when profits rise beyond expected levels.

He described this additional benefit to the resource-owning state as an “economic rent tax” and noted that Ghana was not the first country to adopt such a system.

Dr Ato Forson also rejected concerns that the policy was intended to discourage investment in Ghana’s extractive sector.

“The government of Ghana’s asking for was for the people of Ghana to benefit from its own resources,” the Minister explained.