Corporate taxes from oil producers slump in 2nd half of 2019

Corporate taxes due to the government from oil producing companies, dropped by 42 percent for the second half of 2019, compared to the first half of the same year.

According to the Petroleum Funds report released by the Bank of Ghana, the state recorded 51 million dollars less in corporate taxes between July and December, compared to January to June of 2019.

According to the Central bank’s report, the Corporate Taxes dropped from 121 to about 70 million dollars between July to December 2019.

A study of the report shows that a company like Tullow Oil did not make any payment in Corporate Tax for the period under review.

This could partly be due to the fact that Corporate Taxes are paid on the profits of companies, hence the inability of the oil producing company to pay anything to the state.

Also, the Surface rentals which refers to the amount due the state for leasing a size of land for oil production activities, recorded a drop of about 81 million dollars to record 514.2 million dollars.

Meanwhile, total oil revenue for the second half of 2019 spanning July to December 2019, increased by about 39 percent; from 311.2 to about 432 million dollars.

This was due to improvement in production from the Jubilee and TEN oilfields.

Also, while the Ghana Heritage Fund (GHF) which is for the future, increased by about 58 million dollars to 579 million dollars; the Ghana Stabilization Fund (GSF) recorded a drop as at the end of December 2019.

This is because the fund, which is to provide budgetary support in times of shortfalls in expected petroleum revenues, witnessed a draw-down of 189 million dollars for the six months period.

by Pius Amihere Eduku (Extract from Citi News)

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