Lower taxes from oil companies results in 3.7% tax revenue shortfall for Ghana

Ghana raised an amount of GH¢11.6 billion from taxes during the year 2012, a 3.7% shortfall of the budgeted target of GH¢12.1 billion, according to provisional estimates compiled and released by the central bank February 13, 2013.

A report by the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG), explains that “the shortfall was mainly on account of lower company taxes, especially from oil producing companies.”

According to the MPC, the 2012 budget target set for non-tax revenue and grants were all missed.

“Grants totaled GH¢1.2 billion, falling short of the budget estimate of GH¢1.5 billion” said an MPC statement.

Non-tax revenue during 2012 was GH¢2.2 billion, below the GH¢2.8 billion budget estimated target, according to the statement adding “this was due to the non-realization of mining proceeds as the intended review of the stability agreements stalled in 2012.”

Ghana’s total revenue and grants excluding exemptions in 2012 amounted to GH¢16.1 billion (22.3% of GDP), against a budget estimate of GH¢16.9 billion, the statement says.

By Ekow Quandzie