Ghana’s petroleum industry continues to face significant tax-related challenges, according to Deloitte’s October 2024 Oil and Gas Industry Survey. The report indicates that 46% of industry stakeholders view “high tax rates” as the most critical issue affecting the sector.
The challenges identified in the survey not only threaten profitability but also impede the overall growth and competitiveness of Ghana’s oil and gas sector. In response, 42% of industry players are advocating for a tax amnesty, believing it would create a more favorable tax environment for businesses.
The survey highlights that approximately 80% of industry participants require foreign currency to meet payment obligations but face challenges in obtaining it. High exchange rates are a significant barrier, and stakeholders urge the central bank to address the issue of forex unavailability to facilitate smoother transactions.
Regarding local content regulations, the report reveals that about 91% of the Petroleum industry players believe these regulations are either sufficient or somewhat sufficient to promote and protect Ghanaian participation in the petroleum sector. However, a minority express concerns that the current regime may discourage foreign investment.
The survey further underscores the importance of environmental, social, and governance (ESG) practices in the industry. A majority of top management officials agree that it is crucial for companies to publicly disclose their ESG practices, reflecting a high rating of 4.22 for the importance of transparency concerning environmental and social impacts.
Source: DEW360.NET
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