High tax rates hindering growth in Ghana’s petroleum industry – Deloitte Report

Tax-related challenges continue to threaten Ghana’s petroleum industry, this is according to Deloitte’s October 2024 Oil and Gas Industry Survey.

The report highlights that 46% of industry stakeholders identify “high tax rates” as the most pressing issue.

These challenges according to the report not only impact profitability but also hinder the overall growth and competitiveness of the sector.

About 42 per cent of the industry players are advocating for tax amnesty. This they believe will create a more conducive tax environment for businesses.

The report also reveals that about 80 per cent of players require foreign currency to meet their payment obligations, but encounter some challenges in acquiring the foreign currency.

They cite high exchange rates as a limitation and argue that it will be very helpful if the central bank solves the issue of forex unavailability.

The report further disclosed that approximately 91 per cent of industry players believe local content regulations are sufficient or somewhat sufficient to promote and protect Ghanaian participation in the industry, however only a few believe the regime discourages foreign investment.

The majority of the top management officials believe that it is important for companies to disclose their ESG practices publicly.

This view is further reinforced by the rating of 4.22 given to the companies for the importance of transparency about their environmental and social impact.