4.6.1 High Corporate Tax The corporate tax for mining companies has been increased from the current 25 per cent to 35 per cent. Mining companies would also be required to pay a windfall profit tax of 10 per cent. In another development, the government has reduced the corporate tax for hotels and the hospitality industry from 22 percent to 20 percent. The government is yet to pass the necessary legislative instrument to operationalize the directives in the 2012 Budget Statement. The government is also yet to provide a Regulatory Impact Assessment study on the new directives. 4.6.2 Environmental Tax The Government of Ghana after consultation with the plastic materials and products industry reduced the environmental tax from 20 per cent to 15 per cent. The tax was introduced as part of measures to protect the environment from the menace posed by plastic materials and products. The agricultural and pharmaceutical sectors continue to enjoy exemptions. 4.6.3 Tax Holidays As part of efforts to improve capitalization on the Ghana Stock Exchange (GSE), the government has extended the Stock Exchange tax holiday for another 5 years. In addition, mutual funds and unit trust funds that invest in stocks on the Stock Exchange are exempted from VAT o financial services. 4.6.4 National Fiscal Stabilization Levy (NFSL) The National Fiscal Stabilization Levy has been abolished. Sixth Annual APRM Progress Report: January – December 2011 76