AOMCs call on government to address revenue leakages in petroleum sector

The Association of Oil Marketing Companies is calling on the government agencies to do all they can to address all inadequacies in the petroleum sector which cause the country to lose revenue.

According to the association, many of its members who are tax compliant are forced out of business by their non-compliant counterparts offering outrageous prices which make them uncompetitive.

In an interview with Citi Business News, the Board Chairman of the Association of Oil Marketing Companies, Henry Akwaboah, urged various agencies to be up and doing.

“What measures are we putting in place at the depots at the ports? For example, when Bulk distribution companies bring in products, there has to be a record of it; a record of receipt and a record of the sale. Who is checking to see that what comes in is sold through the formal channels and that the appropriate taxes are being collected?

“I think there are still loopholes and all the agencies that have to work together on this,” he added.

He also stated his outfit’s commitment to sanitising the sector.

“As the Association of Oil Marketing Companies, we are ready to support the government. We have already admonished our members that we will not support them if they engage in any illegal activities.”

Earlier this year, the Chamber of Bulk Oil Distributors (CBOD) disclosed that Ghana lost GH₵1.9billion to tax evasion in 2019.

The Chamber blamed this situation on a compromised Petroleum Product Marking Scheme (PPMS).

The Ghana Revenue Authority, as part of efforts towards improving the country’s revenue mobilisation drive, this month directed Oil Marketing Companies (OMCs) to make an upfront payment of consumer taxes and levies on the petroleum products they lift from bulk suppliers.

This move, the Authority says, will control the situation that sees OMCs fail to remit consumer taxes charged on petroleum products sold at the pumps.