Ghana’s petroleum industry continues to grapple with tax-related difficulties, as highlighted in Deloitte’s October 2024 Oil and Gas Industry Survey.
According to the report, 46% of industry stakeholders view “high tax rates” as the most critical issue affecting their operations.
These tax challenges are not only reducing profitability but also stifling growth and limiting the sector’s competitiveness. Around 42% of industry players are calling for a tax amnesty, believing it would help foster a more favourable business environment.
The survey also indicates that nearly 80% of respondents rely on foreign currency to fulfil their financial obligations but face hurdles in acquiring it.
High exchange rates were singled out as a significant obstacle, with many urging the central bank to address the persistent forex shortages.
On the regulatory front, about 91% of industry players feel that local content regulations are either adequate or somewhat adequate in encouraging Ghanaian involvement in the sector.
However, only a small percentage believes these regulations deter foreign investment.
Additionally, the majority of senior management officials emphasize the need for companies to be transparent about their Environmental, Social, and Governance (ESG) practices.
The importance of public disclosure around environmental and social impacts was underscored by an average rating of 4.22 in the survey.