CBOD – NPA’s statement on BDCs’ suspension misleading

• Posted on July 25, 2018
• by Ellsamwise King
• Comment

The Chamber of Bulk Oil Distributors (CBOD) has described as inaccurate and misleading, a statement by the National Petroleum Authority (NPA),  indicating that two members of the Chamber have been suspended for tax evasion.

A statement from the NPA had named two members of the Chamber, Misyl Energy Co Ltd, and Globex Energy Co. Ltd, alongside six other Oil Marketing Companies (OMCs) as tax evasion culprits.

The CBOD, however, described the NPA’s statement as misleading since BDCs do not collect petroleum taxes in the petroleum tax administration process.

“The BDCs mentioned in the NPA release have not been sanctioned for tax evasion but rather for under-declaring their fuel sales volumes to the NPA. An action which is considered a breach of the NPA Act, 2005, (ACT691) as well as the terms and conditions governing their licenses., Misyl Energy Co. Ltd and Globex Energy Co. Ltd”

“BDCs do not collect petroleum taxes or pay petroleum taxes in the petroleum tax administration process. This function is the sole preserve of Oil Marketing Companies (OMCs). The taxes are to be paid by OMCs after reconciliation with the GRA subject to agreed payment terms,” a statement from CBOD’s said.

A statement from the NPA on the matter said the companies have been suspended for between one and three months.

The suspension took effect from 18^th July 2018.

The NPA said the suspension was “for their involvement in activities that led to the loss of tax revenue to the Government of Ghana.”

It warned the companies not to engage in any “sale, supply, transportation, discharge and receipt of petroleum products for the duration of their suspension.”

The companies who have been handed a 3-month suspension include Petro Afrique Company Limited, Life Petroleum Company Limited and Unique Company Limited.

The NPA further urged the public to desist from engaging the services of any of the sanctioned companies.

The NPA’s action comes after they were urged to it to take tough actions against erring OMCs and BDCs especially after the sector was rocked with a massive fuel diversion scandal.

Source: CNR