Ghana loses 90% of foreign capital from gold sale from May 2020 to present – PMMC
Economic news for Wednesday, December 15, 2021
Precious Minerals Marketing Company (PMMC) Managing Director Nana Akwasi Awauh revealed that Ghana lost around 90 percent of foreign capital from gold products due to smuggling overseas from May 2020 to present ‘hui.
He is confident that the recently launched Ministry of Lands and Natural Resources anti-smuggling task force will fill in the gaps.
“Our information shows that it costs between $ 400 and $ 500 to smuggle 1 kg of gold out of Ghana. If the exporter went through PMMC, it would cost him over $ 1,000 for 1 kg of gold. We have information on the routes where smuggling takes place and we have initiated movements and are working very hard to stop the illicit activity.
“We also conducted our own investigation into why people choose to smuggle gold overseas and realized that this was in part because of the 3% withholding tax on gold exports. So we deliberated on the issue and asked the government to reconsider it. Fortunately, the tax has been reduced to 1.5% and we hope that when the parliamentary processes are concluded, it will reduce smuggling and work instead through PMMC, ”Nana Akwasi Awuah told host Bonohene Baffour Awuah on the show. “Ghana Kasa” on Kasapa FM / Agoo TV Wednesday.
He noted that the proceeds from the sale of the smuggled gold do not reach the State of Ghana and the illegal exporter is free to spend the money as they wish.
“When gold is exported through the right channel (PMMC), the government is able to collect development taxes. Again, because the Gold Export Law says that 80% of the proceeds will have to come home, it means Ghana will have a lot of foreign capital. If things were to be done right, the amount of foreign capital that comes in each month will have helped the economy stabilize. Nana Akwasi Awuah said.