Introduction

In a decisive move to restore order and transparency in local revenue generation, the Ashanti Regional Coordinating Council (RCC) has enacted stringent new regulatory measures. These directives specifically target the imposition of charges and levies by Metropolitan, Municipal, and District Assemblies (MMDAs) within the region’s mining, quarry, and sand-winning zones. This regulatory tightening follows widespread petitions and public exposés detailing the illicit collection of so-called “galamsey taxes” by unauthorized individuals and groups. The new framework, announced by Ashanti Regional Minister Dr. Frank Amoakohene, mandates strict adherence to Ghana’s local governance legal framework, aiming to eliminate arbitrary fees, protect legitimate businesses, and strengthen internally generated revenue (IGR) systems. This article provides a detailed, SEO-optimized breakdown of the RCC’s directives, the context of illegal mining (“galamsey”) in Ghana, the practical steps for stakeholders, and answers to frequently asked questions.

Key Points of the New RCC Directives

The core directives issued by the Ashanti RCC are designed to systematize and legalize levy collection. The primary takeaways for MMDAs and operators are:

• Mandatory Legal Compliance: All levy and charge imposition by Assemblies must strictly follow approved statutory procedures and local government guidelines. No ad-hoc or extralegal fees are permitted.
• By-Law Validation: All existing by-laws governing charges and levies must be submitted to the Ashanti RCC for review and formal validation. This creates a centralized repository of approved fee structures.
• Equipment Registration Control: Entrepreneurship mobilization task forces (often involved in revenue collection) are authorized to issue stickers only to legally registered entities, their equipment, vehicles, and premises.
• Enhanced Due Diligence: Assemblies must proactively request and verify business registration certificates, operational licenses, and permits from any operator seeking to register equipment or conduct business, with focused scrutiny on mining, quarrying, and sand-winning activities.
• Focus on Legitimate Revenue: The goal is to foster accountable entrepreneurship mobilization, eliminate unauthorized fees, and build a fair, sustainable revenue base for the Assemblies.

These measures represent a significant shift from a fragmented, often corrupt system to a more centralized, transparent, and legally accountable model for local revenue administration in the Ashanti Region’s extractive sectors.

Background: The ‘Galamsey’ Crisis and Levy Abuse

Understanding Galamsey and Its Fiscal Impact

“Galamsey” is a Ghanaian portmanteau of “gather them and sell,” referring to illegal small-scale mining operations, often environmentally destructive. The proliferation of galamsey, particularly in gold-rich regions like Ashanti, has created a parallel economy. This environment fostered the emergence of the “galamsey tax”—where informal, unauthorized groups (sometimes affiliated with or exploiting the galamsey ecosystem) imposed illegal levies on miners, transporters, and businesses. These illicit collections were not remitted to state or Assembly coffers, representing a massive drain on potential internally generated revenue (IGR) and a significant cost of doing business.

Pre-Existing Levy System Challenges

Prior to the RCC’s intervention, the system for levying fees in mining communities was characterized by:

• Lack of Standardization: Different Assemblies had varying, often unpublicized, fee structures.
• Multiple Points of Collection: Operators faced demands from multiple uncoordinated task forces and community groups, leading to duplication and harassment.
• Opaque Revenue Management: There was little transparency on what was collected, by whom, and how funds were utilized, breeding corruption.
• Legal Ambiguity: Many levies were imposed without clear statutory backing or published by-laws, making them legally challengeable but difficult to contest in practice.

This chaotic landscape stifled legitimate entrepreneurship, detered investment in the formal mining support sector, and deprived Assemblies of legitimate revenue for development projects.

Analysis: How the New Measures Address Systemic Failures

Centralization and Legal Sanitization

The directive for all by-laws to be submitted to the RCC for validation is a cornerstone of the new approach. This creates a top-down review mechanism to ensure every levy has a clear legal basis, typically under the Local Governance Act, 2016 (Act 936) and its subsequent amendments, or relevant mining and environmental regulations. It eliminates “phantom” by-laws and ensures fee structures are reasonable, published, and uniformly applicable. This legal sanitization provides a defensible framework for Assemblies and a clear reference for businesses to challenge illegal demands.

Targeting the “Sticker” System for Accountability

The “sticker” system is a common practice in Ghana where a permit sticker is affixed to a vehicle or equipment to show paid levies for a period. The new rule restricts sticker issuance to legally registered entities. This directly attacks a key loophole: previously, unlicensed operators or even individuals could purchase stickers, legitimizing their (often illegal) operations. Now, the sticker becomes a verifiable token linked to a registered business with a physical address and tax obligations, increasing traceability and accountability in the revenue chain.

Enhanced Due Diligence as a Gatekeeping Function

By tasking Assemblies to actively verify business registrations and permits, the RCC is making local government units active gatekeepers of formalization. An operator without a certificate from the Registrar General’s Department or a permit from the Minerals Commission or Environmental Protection Agency (EPA) cannot legally register equipment or operate. This does two things: it pressures informal operators to formalize, and it protects Assemblies from inadvertently legitimizing illegal operations. It aligns local revenue collection with national formalization goals for the mining sector.

Shifting from Extortion to Sustainable Revenue

Ultimately, the analysis points to a strategic shift. The RCC recognizes that sustainable development financing for Assemblies cannot rely on chaotic, illegal collections that scare away investment. By creating a predictable, lawful, and transparent fee environment, the region aims to attract more legitimate service providers in mining logistics, equipment supply, and construction. This broadens the tax base over time, even if some collections are lower initially, leading to more stable and predictable IGR for regional development projects.

Practical Advice for Stakeholders

For Legitimate Miners, Quarry Operators, and Sand-Winners

• Formalize Your Business: Ensure your business is duly registered with the Registrar General’s Department. Obtain all necessary licenses from the Minerals Commission (for small-scale mining), the EPA, and relevant district authorities.
• Document Everything: Keep certified copies of all registration documents, licenses, permits, and receipts for any levies or fees paid to Assemblies or authorized task forces.
• Know Your Levies: Request a published schedule of all applicable fees and charges from the relevant MMDA. Verify that any demanded payment aligns with this schedule and the validated by-law.
• Challenge Illegal Demands: If approached for an unlisted fee or by an unidentifiable group, politely request official identification and the legal basis for the demand. Report such incidents in writing to the District Chief Executive (DCE) and the Ashanti RCC.
• Verify Stickers: Only accept stickers that are clearly linked to your registered business name and vehicle/equipment details. Ensure the sticker has an expiry date and issuing authority’s insignia.

For Metropolitan, Municipal, and District Assemblies (MMDAs)

• Conduct a By-Law Audit: Immediately inventory all revenue-related by-laws and submit them to the Ashanti RCC for validation as directed.
• Publish Fee Schedules: Make approved fee schedules publicly accessible at Assembly offices, on websites, and at key community entry points.
• Train Revenue Collectors: Educate all task forces and revenue officers on the new directives, the validated by-laws, and the importance of professional conduct.
• Implement a Verification Protocol: Establish a clear, documented process for checking business registrations and permits before issuing any stickers or accepting equipment for registration.
• Enhance Record-Keeping: Maintain meticulous, auditable records of all collections, linked to specific by-laws and operator details.

For Community Members and Advocacy Groups

• Become Informed: Obtain copies of the validated by-laws from your local Assembly to understand what legal levies exist.
• Report Abuses: Document instances of illegal levy collection (date, location, group name, amount demanded) and report them to the Assembly’s security committee, the RCC, and the Ghana Police Service.
• Support Formalization: Encourage legitimate businesses in your community to formalize, as this strengthens the Assembly’s revenue base for local projects (schools, clinics, roads).

Frequently Asked Questions (FAQ)

What exactly is a “galamsey tax”?

It is an informal, illegal levy imposed by unauthorized individuals or groups on miners, transporters, and businesses operating in or near illegal mining (galamsey) areas. These payments are not authorized by any Assembly or state agency and do not contribute to public revenue.

Are all mining levies now illegal under the new RCC rules?

No. The new rules do not abolish legitimate levies. They require that all levies must be based on a by-law that has been validated by the Ashanti RCC and must be imposed through approved statutory procedures. Legal levies for services like business permits, sanitation, or specific extractive industry fees remain valid if properly authorized.

What happens to Assemblies that continue to use unvalidated by-laws?

Any levy collected under a by-law not validated by the RCC is illegal. Collectors could face internal disciplinary action, and the Assembly risks legal challenges from affected businesses. The RCC’s oversight role includes ensuring compliance, and non-compliant Assemblies may face sanctions or withheld approvals for other regional programs.

How can a business verify if a levy demand is legitimate?

A business should: 1) Ask for the specific by-law number and section authorizing the fee. 2) Check if the by-law is listed on the validated list from the RCC (which Assemblies should have). 3) Confirm the collector is an authorized Assembly official (ask for ID). 4) Ensure a official receipt is issued from the Assembly’s revenue account, not a personal account.

What are the legal implications for individuals demanding illegal “galamsey taxes”?

Demanding illegal levies constitutes extortion, theft, and impersonation (if posing as an official). It is a criminal offense under the Criminal Offences Act, 1960 (Act 29). Perpetrators are liable for prosecution. Additionally, businesses that pay such taxes may be complicit in undermining the legal system, though primary liability rests with the collectors.

Will these new rules increase the cost of doing business in mining areas?

In the short term, legitimate costs may become clearer and potentially more consolidated, as businesses pay only validated fees instead of multiple illegal ones. The long-term effect should be a reduction in the total “tax burden” as illegal exactions are eliminated. A transparent, predictable system is generally less costly than a chaotic, extortionate one.

Conclusion: A Step Towards Transparent Local Governance

The Ashanti RCC’s new regulatory framework represents a critical intervention in a sector plagued by fiscal anarchy. By centralizing by-law validation, enforcing strict due diligence, and regulating the sticker system, the Council is directly targeting the mechanisms that enabled the “galamsey tax” culture. Success hinges on consistent implementation, rigorous monitoring by the RCC, and the willingness of Assemblies to prioritize long-term, lawful revenue over short-term, illicit gains. For legitimate businesses, this promises a more stable and fair operating environment. For the region, it is a strategic move to harness the economic potential of its mining and quarry sectors through accountable local governance, ensuring that mineral wealth contributes concretely to community development rather than private pockets. The effectiveness of these measures will be a key indicator of the Ashanti Region’s commitment to fighting systemic corruption in local revenue administration.

Sources and Further Reading

• Ashanti Regional Coordinating Council (RCC) Official Communiqué on Levy Directives, February 2026.
• Ghana’s Local Governance Act, 2016 (Act 936).
• Mineral Development Fund Act, 2016 (Act 925) – for context on mining sector revenue sharing.
• Environmental Protection Agency (EPA) Ghana – Guidelines for Mining Operations.
• Registrar General’s Department – Business Registration Requirements.
• “The Galam