Foreign Vessels threaten to move out as NPA imposes taxes on their operations

Foreign vessels operating in the West African coastal area have threatened to pull out of Ghana due to what they describe as “Heavy taxes” imposed on their operation by the National Petroleum Authority of Ghana (NPA).

A letter from the NPA, dated January 12, 2018, read that effective January 16, 2018, all the taxes, levies and margins applicable to domestic Gasoil (except UPPF Margin) will apply to Marine Gasoil (MGO) Foreign.

This directive seems to have angered foreign vessels trading on the shores of West Africa as they claim it is against industry practice. Speaking to Yourbusinesswatch.com, an industry player cautioned the government as it has the propensity to slow down business in Ghana.

Speaking on anonymity, He said “This directive is alien to us. The whole of West Africa, none of the countries is demanding for this charge, and we can only advise ourselves to do business in either Togo or Nigeria. This imposition means Ghanaian importers will suffer and that will be negative to the economy of Ghana.”

It will be recalled a similar directive in Nigeria in the airline industry forced a lot of international carriers offering flight services to relocate their offices to Accra, Ghana from their operational bases in Nigeria. The airlines cited the high cost and lack of aviation fuel as some of the reasons for their relocation.

Industry players believe this move by the NPA can spark similar agitations in the Ghanaian fishing industry. They express shock at the step as such taxes will slow down the activities at the port and cause the state financial loss.