Pulse.com.gh logo
Go


Illegal gold trade Gold smuggling costs Ghana $360 million in tax revenue

The smuggled gold weighed a total of 101,179.00 kilogrammes and is reported to have caused the country to lose about US$ 360 million in tax revenues to the state.

  • Published:
Gold bars play

Gold bars

Gold worth $3.6 million was shipped from Ghana to India without proper documentation, data from India's Zauba Technologies & Data Services found.

The smuggled gold weighed a total of 101,179.00 kilogrammes and is reported to have caused the country to lose about US$ 360 million in tax revenues to the state.

Last month, customs officials at the Kotoka International Airport seized $18 million worth of gold bound for India and Dubai via Emirates Airlines without proper documentation.

The gold bullion, contained in 12 boxes, weighed about 480 kilogrammes  ready for export to India and Dubai via Emirates Airlines when it was seized upon after a tip-off.

The seized gold bullion belonged to the Licensed Gold Exporters (LGEs): BGC International, K. K. Enterprises (both Indian Companies); A.A. Minerals, Italtec Ghana Limited and Guldrest Resources (Ghanaian companies).

The activities of LGEs in exporting gold without any documentation was a daily occurrence at the airport, and the exporters avoided paying the appropriate taxes to the government, The Ghanaian Times quoted an unnamed official at the Bureau National Investigations (BNI) as saying.

The BNI is said to have begun investigations into the matter.

Gold smuggling is said to be one of the reasons that had contributed to the fall of the cedi against major currencies.

“Another reason is to avoid the repatriation of proceeds back into the country as required by law; monies which could help to relieve pressure on the cedi,” an official of the minerals trading arm of the state told the B&FT.

report by the Africa Centre for Energy Policy has shown that Ghana received 1.7 billion USD in taxes alone, out of a total of $23 billion value of gold production in the period 2010 to 2013.

"In the last four years (2010-2013) Ghana’s average share of the total value of Ghana’s gold production was approximately 7 percent. While Ghana received 1.7 billion USD in taxes, the total value of Ghana’s gold production was exceeding 23 billion USD in the four-year period," according to the report titled ‘Golden Days for Newmont.’

Similarly, the report said, "in 2011 Ghana’s gold production valued 5.78 billion USD and made up 38 percent of total export earnings but Ghana only received 0.51 billion USD in tax and royalties constituting only 10 percent of the export value."

READ MORE

The World Gold Council  has emphasised that revenues from gold mining account for the lion's share of Ghana’s total mineral revenues, but comparing Ghana’s take of the total value of Ghana’s gold production, it appears to be under-taxed.

In a move to streamline gold export procedures, the Bank of Ghana last year directed that all gold exporters channel their export through the Precious Minerals Marketing Company (PMMC).

However, the gold exporters challenged the appointment of the PMMC in court as the certifier for gold exports.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Education Top 5 private high schools in Ghana according to WAECbullet
3 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
4 Breaking Otabil finally breaks silence on banking controversiesbullet
5 Incompetence Otabil wasn't qualified to be Capital Bank Board...bullet
6 Tax Policy Gov't weighs in on controversial MoMo taxbullet
7 Promo Glo introduces Yakata, Ghana’s most exciting telecoms...bullet
8 How to create a verified PayPal account Learn how to...bullet
9 Banking In Ghana Stranded customers of First Allied...bullet
10 Mutual funds in Ghana Top 5 mutual funds in Ghanabullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
5 Former Capital Bank staff grills pork for survivalbullet
6 Support Finance minister buys Kantanka carbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Plane Crash Starbow suspends operations following plane crashbullet
9 Video We are determined to move Ghana beyond aid - Bawumiabullet

Business