Halt distribution of petroleum products to OMCs that evade tax – Dr Bawumia

Vice President, Dr. Mahamudu Bawumia Vice President, Dr. Mahamudu Bawumia

Thu, 8 Apr 2021 Source: www.ghanaweb.com

Vice President, Dr Mahamudu Bawumia has charged Oil Marketing Companies operating in the country to halt the distribution of petroleum products to third-party companies.

According to him, many of such third-party OMCs have over a period evaded honoring their tax obligations for the distribution and transportation of petroleum products across the country.

Addressing a gathering during the launch of the National Retail Outlet Fuel Monitoring System by the National Petroleum Authority, the vice president stressed that the new monitoring platform was necessary to eradicate illegal activities related to fuel distribution and transportation.

“There are many OMCs who owe GRA taxes but they refuse to go and pay. They rather depend on third-party suppliers to bring them fuel while the GRA is waiting to be paid. In the end, they don’t get any money but the OMCs continue in businesses. One of the problems we have with this situation of these illegal activities and the evasion of taxes is that the honest OMCs are put at a competitive disadvantage,” Dr Bawumia said.

He continued, “The competitors who are those engaged in the illegal activities don’t pay taxes, and so they cannot effectively compete. If we don’t address this matter, many people will desist from being law-abiding citizens. So, we are tasking the NPA with immediate effect to halt the granting of third party supplies of oil companies who are not in good standing, extending heavily indebted OMCs that are determined to evade the payment of statutory levies”.

Meanwhile, data released by petroleum regulator, the NPA showed that Ghana has between 2015 and 2019 lost over GH¢4.7 billion in tax revenue as a result of illegal petroleum sector activities by the OMCs.

Source: www.ghanaweb.com
Related Articles: