An Oil and Gas Industry Survey conducted by Deloitte Ghana in October 2024 has disclosed that Ghana’s petroleum industry is being threatened by tax-related challenges.
According to the report, 46 per cent of stakeholders in the industry said “high tax rates” were the most pressing issue facing them.
Apart from affecting the profitability of businesses, the report also indicates that the high tax rates paid by the industry players affect their overall growth and competitiveness.
To help create a more conducive tax environment for businesses, the players want government to cud down on the taxes, with about 42 per cent of them advocating for tax amnesty from the government.
Part of the challenges the players experience, according to the report, is acquiring foreign currency to meet their payment obligations. The report says about 80 per cent of industry players require foreign exchange for their business.
They cite high exchange rates as a limitation and argue that it will be very helpful if the central bank solves the issue of forex unavailability.
The report further disclosed that approximately 91 per cent of industry players believe local content regulations are sufficient or somewhat sufficient to promote and protect Ghanaian participation in the industry, however only a few believe the regime discourages foreign investment.
The majority of the top management officials believe that it is important for companies to disclose their ESG practices publicly.
This view is further reinforced by the rating of 4.22 given to the companies for the importance of transparency about their environmental and social impact.
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