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Business News of Thursday, 3 October 2019

Source: goldstreetbusiness.com

Oil Companies pay about GH¢6 billion as taxes to government annually


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Member companies of the Association of Oil Marketing Companies (AOMCs) pay about GHc 6 billion annually to government as tax, Mr Kwaku Agyeman-Duah, Industry Coordinator of the Association has announced.

He said in 2019, they paid about GHc 500 million monthly in tax to government, raking in a total of GHc 3 billion in the first two quarters of the year.

Mr Agyeman-Duah, who announced this during a presentation during a media soiree with some selected Journalists said the investments of Oil Marketing Companies and Liquefied Gas Marketing Companies also stood at US$ 4 billion.

He said 60,000 direct and 100,000 indirect jobs were created by the Association with individual companies undertaking various Corporate Social Responsibility projects in their areas of operation.

The Association of Oil Marketing Companies is an industry association and a private initiative by the oil marketing operators in Ghana, established since 2003.

It is an advocacy institution established to help direct downstream policy, legislation and regulation and pursue research towards the development of the downstream sector.

He said its members had a total of 3869 outlets, made up of 1720 service stations, 1363 filling stations, 656 LPG Stations and 130 Reseller Outlets throughout the country.

Mr Agyeman-Duah said although the oil business was seemingly lucrative, challenges such as differential zonal pricing, illegal fuel trade, variation of levies by various institutions, and payment of taxes within 21 plus four days were stifling their progress.

He mentioned other challenges as zonalization by some Bulk Distribution Companies at various depots, maintenance of high level of safety at all outlets and insistence on insurance bonds.

On way forward, the industry Coordinator said they were developing training packages for trainees at all levels and implementation of peer reviews and operational audit inspection including mystery shopping.

He said his outfit was also tackling the differential zonal pricing by BDCs in order not to allow the OMCs to price their products differently.

He called on government to extend the tax payment deadline of 21 days plus four to 30 days or the institution of “Pay as you sell” policy to ensure timely and effective tax compliance.

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