Home News NPA Suspends BDCs, OMCs …For Tax Evasion

NPA Suspends BDCs, OMCs …For Tax Evasion

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The National Petroleum Authority (NPA) has suspended some Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs) for periods of between one month and three months, effective 18th July 2018, for their alleged involvement in activities that led to loss of tax revenue to the Government of Ghana.

Consequently, the suspended companies; Union oil Ghana Limited, Agapet Limited, Excel Oil Company Limited, Misyl Energy Company Limited, Globex Energy   Company Limited(serving one month suspension), Petro Afrique Company Limited, Life Petroleum Company Limited, and Unique Company Limited, are to desist from engaging in the sale, supply, transportation, discharge and receipt of petroleum products for the duration of their suspension.

The public is therefore advised to desist from doing business with or report any infringement on the part of the listed companies to the NPA.

Meanwhile, hours after the NPA released its statement, the Ghana Chamber of Bulk Oil Distributors (CBOD) also fired a statement saying that the release by the NPA identifies two of its members, Misyl Energy Co. Ltd and Globex Energy Co. Ltd as tax evasion culprits was inaccurate and unintendedly misleading.

Read the full statement from the CBOD below:

We refer to the statement issued by the National Petroleum Authority on the above subject dated 24th July 2018 and hereby respond as follows; 1. The Ghana Chamber of Bulk Oil Distributors (CBOD) acknowledges and supports interventions by the NPA and government agencies to address the menace of petroleum tax evasion that continues to bedevil the industry. As reported in our 2017 industry report, this phenomenon robbed the State in excess of Ghs1.4 billion in 2017 and must strongly be addressed.

  1. The press release by the NPA identifies two of our members, Misyl Energy Co. Ltd and Globex Energy Co. Ltd as tax evasion culprits. This we respectfully believe is inaccurate and unintendedly misleading.
  2. 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. 4. 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.

Thank you.

Signed

For:

Corporate and Regulatory Affairs Unit

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