From the Field
Ghana introduces new downstream tax model
ACCRA, August 17, 2018 – The Petroleum Unit and Customs Division of the Ghana Revenue Authority is introducing a new model of tax collection for oil marketing companies (OMCs) in Ghana, local media reported Thursday.
The new system obliges OMCs to post their bond and bank guarantees as security for the recovery of taxes should they go out of business.
“Some of the OMCs have gone into so much debt that they find it difficult paying their taxes. Co-operation has so far been good but the way forward now is to fall on their bonds and bank guarantees. Once you come to us under the bonding system we just made the deductions once you default,” Petroleum Unit and Customs Division commissioner Isaac Crentsil was quoted as saying by Modern Ghana.
The new model is part of a strategy intended to reduce revenue leakages, especially in the petroleum sector, Crentsil added.
Last week, Ghana’s National Petroleum Authority lifted the ban on eight oil marketing and bulk distribution companies suspended for tax evasion.