Oil Marketing Companies (OMCs) are appealing for an extension of the payment date of some taxes.
The OMCs contend that the current twenty-one day period for payment of taxes such as the Special Petroleum Tax, is adversely impacting their operations.
According to the CEO of the Association of Oil Marketing Companies (AOMCs), Mr. Kwaku Agyeman Duah, the situation has also compelled some market operators to borrow from banks to meet the timelines.
The request by the OMCs came in a response to Citi Business News question on major expectations in the 2018 budget to be presented to Parliament in November.
“The problem that we have as OMCs is the number of days that we need to pay the taxes; it is so restrictive, it’s unpalatable and it squeezes us so much especially when you are not making the sales. We have the situation where even when you have not finished selling the products, you will need to pay the taxes but where do you get the money from? It means you would have to go to the banks again to borrow money and pay,” Mr. Agyeman Duah told Citi Business News.
He added that he is however hopeful of a major change following continuous discussions with the government.
“This is something which has been a cyclical thing which is worrying us so we are having discussions with government which we hope to get the number of days which is about twenty-one to twenty –five days, extended to at least thirty-one days.”
The government in the 2017 budget, reduced the Special Petroleum Tax for downstream petroleum sector players to 15% from the 17.5%.
This is among others to relieve the operators of the burden and also cushion consumers in times of price surge on the global market.
Aside the Special Petroleum Tax, retailers of petroleum products are expected to charge; Excise duty, road fund, energy fund, energy debt recovery levy as well as Price stabilisation and recovery levy as part of the taxes and levies components for the price build up.
Meanwhile the AOMC boss tells Citi Business News his side is not anticipating any major tax reductions to be announced in the 2018 budget.