Deloitte Report: High tax rates stalling growth in Ghana’s petroleum sector

Ghana’s petroleum sector continues to face significant challenges due to tax-related issues, according to Deloitte’s October 2024 Oil and Gas Industry Survey. The report reveals that 46% of industry stakeholders view “high tax rates” as the most critical challenge, which not only affects profitability but also stifles the sector’s growth and competitiveness.

The survey indicates that 42% of industry players are pushing for a tax amnesty, believing that such a measure would create a more favorable tax environment for businesses.

Another key issue identified in the report is the difficulty in acquiring foreign currency. Approximately 80% of respondents rely on foreign currency to meet their financial obligations but struggle due to high exchange rates. Industry players argue that resolving the unavailability of foreign exchange would greatly benefit their operations, calling on the central bank to address the matter.

Regarding local content regulations, about 91% of respondents feel that the current policies are either sufficient or somewhat sufficient in promoting and protecting Ghanaian participation in the industry. However, a small percentage expressed concern that these regulations might discourage foreign investment.

The report also emphasizes the importance of transparency in environmental, social, and governance (ESG) practices. Most top management officials believe it is crucial for companies to publicly disclose their ESG efforts. This sentiment is reflected in a high rating of 4.22 given by respondents, underscoring the value placed on openness about environmental and social impacts.

Source:dailymailgh.com