OMC group says oil companies pay about GH¢6b in taxes annually

The Association of Oil Marketing Companies (AOMCs) says oil companies pay about GH¢6 billion annually to government as tax.

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

Mr Agyeman-Dua, who announced this during a presentation in at media soiree with some selected journalists, said the investments of oil marketing companies and liquefied gas marketing companies also stood at $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 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 they had a total of 3869 outlets, made up of 1720 service stations, 1363 filling stations, 656 Liquefied Petroleum Gas (LPG) stations and 130 reseller outlets throughout the country.

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

He said his outfit is also tackling the differential zonal pricing by bulk distribution companies, in order not to allow the OMCs price their products differently.

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

Source: GNA