Bussiness
Crude oil production declined on an average of 10 percent per annum for three consecutive years – PIAC
The Public Interest and Accountability Committee (PIAC) has revealed that there has been a decline in crude oil production on an average of 10 percent per annum for three consecutive years
A volume of 71,439,585 barrels was produced in 2019 but declined to 66,926,806 barrels in 2020 representing 6.32 percent
It further declined to 55,050,391 barrels in 2021 representing 17.75 percent and reduced again to 51,756,481 barrels in 2022 representing 5.98 percent.
The Vice Chairman of the Public Interest and Accountability Committee (PIAC) Mr. Nasir Alfa Mohammed disclosed this at their regional public forum on the management of Ghana’s petroleum revenues last Wednesday at Wa in the Upper West Region.
The forum was organized in line with PIAC’s mandate of providing a platform for public debate on the management of petroleum revenue which brought together stakeholders across the region.
The Vice Chairman said there was a need to speed up the sustainable development of its petroleum resources to reverse the decline in petroleum production through the attraction of new investors as well as early completion of ongoing projects.
He said it was important for policymakers to formulate a long-term national development plan to help guide the spending of oil revenue in the country.
He mentioned some of the development projects that were funded through petroleum revenues in the region, which include the construction of the rehabilitation of the irrigation dam at Guo in the Nandom District, the construction of two dams at Yebilpe and Kadowli in the Wa Central Constituency, upgrading of Wa-Bulenga-Yaala Road and the construction of a warehouse at Bulenga.
The Chairman of the forum Professor Emmanuel Kanchebe Derbile expressed gratitude to the committee for giving such an opportunity to the people of the Upper West Region to contribute and discuss the management and use of Ghana’s petroleum revenue.
“The petroleum industry in the country is relatively new and it is important that we all show interest in it for the betterment of our understanding in the sector, “ he said.
Participants were allowed to debate, ask questions and give their suggestions on how to manage the country’s petroleum revenue.
The Public Interest and Accountability Committee (PIAC) is a stationary committee established under section 56 of the petroleum revenue management Act 2011 (Act 815).
FROM RAFIA ABDUL RAZAK WA
Bussiness
Ghana’s GDP shows economy is fast recovering despite DDEP – Finance Ministry
Ghana’s Gross Domestic Product (GDP) indicates a rapid economic recovery despite global challenges and ongoing debt restructuring, according to the Ministry of Finance (MoF).
The Ministry in a statement today indicated that latest data from the Ghana Statistical Service (GSS), cumulative economic growth for the second quarter (Q2) of 2024 reached 6.9%, a notable increase from the 4.7% recorded in the first quarter of 2024.
The MoF statement further noted that, “The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).”
According to them, the overall real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.
By Edem Mensah-Tsotorme
Read full statement below
Bussiness
Facebook, Youtube, online trading companies must be taxed – Deputy Finance Minister
The Deputy Finance Minister Dr Alex Ampaabeng, has proposed that online trading companies should be taxed to bolster the economy.
He noted that these companies, both local and international, generate significant revenue from their Ghanaian clients, which underscores the necessity for taxation.
In an interview with Bernard Avle on Channel One TV’s The Point of View, Dr Ampaabeng pointed out various potential revenue sources for Ghana, including online businesses and content creation companies.
He questioned why other national companies operating in Ghana are taxed, but social media platforms like Youtube and Facebook, which run numerous advertisements, are not included in the Ghanaian tax system.
According to him, these social media companies earn profits from the advertisements they display, and online trading companies also generate income from the sale of their products and services.
He mentioned online trading companies such as Jiji, Jumia, and Tonaton, which he believes surpass all physical marketplaces in Ghana in size.
According to him, “I can’t think of a country which has not gotten a digital service tax system of some sort, so Ghana is long overdue. Just to make an example so that people will appreciate where I’m coming from. Go to Youtube and play a video, within one or two minutes, you are going to watch about two, or three adverts.”
“What it tells you is that Facebook or Youtube is making profits right here in Ghana. Go to your Facebook account, and you are going to see a number of adverts on your right, left. What it is telling you is that Facebook is making profits right here in Ghana and not being taxed. Meanwhile, there are companies operating in Ghana, for jurisdiction reasons, of course, that are being taxed,” he said.
The Deputy Minister added that “So then, it comes to the question of the application of our tax laws. Revenues generated in Ghana are subject to taxes. We have Facebook, TikTok and all those players, these are digital platform owners.”
He stressed, “Then we have the digital or market players, here we are talking about individuals who are using the digital platforms. We have Jiji, Jumia, Tonaton, these combined, are bigger than all physical marketplaces in Ghana. And it tells you the volume of transactions, that are going on there.”
He expressed his hope that individuals earning online profits from Ghanaian residents would be taxed.
“There are conversations ongoing, I wouldn’t want to pre-empt anything, maybe in the future, it might not be anytime soon, what I would like to see, is a Ghana where people who are earning all forms of profits in the country are subject to taxes. People who are trading online to Ghanaian residents, people who are generating revenue from Ghana are allowed to pay taxes,” he noted.
Additionally, he proposed a collaboration with the government to curb cybercrime by registering and verifying these online trading companies.
“We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified,”he concluded.
Source: Citinewsroom.com
