Ghana: Extend Payment Period Of Energy Sector Shortfall Levy From 30 Days To 45 Days – COMAC Tells Govt

The Chamber of Oil Marketing Companies (COMAC) in Ghana has asked government to extend the payment period for the energy sector debt recovery levy from 30 days to 45 days to alleviate cash flow constraints on its members.

According to COMAC, its members are struggling with high operational costs, rising overhead fees, multiple regulatory compliance requirements, diminishing profit margins, the constant need for capital investment in infrastructure upgrades and safety, and compliance systems.

Addressing a recent press conference in Accra, the Chief Executive Officer of COMAC, Dr. Riverson Oppong, acknowledged the need for sustainable debt recovery in the energy value chain.

However, he noted that the recent increase in the Energy Sector Shortfall Debt Recovery Levy would have serious implications for the business operations of Oil Marketing Companies (OMCs).

To support OMCs, Dr. Oppong reminded the Ghana Revenue Authority and the Ministry of Finance to implement the relief measures proposed during discussions on the levy increment.

“The sustainability of OMCs’ businesses heavily relies on the implementation of the corresponding relief measures, which were proposed and mutually acknowledged during those engagements, including the transition of eligible OMCs from the cash-and-carry model to credit-based tax payment structures supported by insurance bonds,” he said.

Dr. Oppong also called for the removal of all petroleum subsidies to eliminate market distortions and ensure parity.

Source: https://energynewsafrica.com