The Chamber of Bulk Oil Distributors (CBOD) has reaffirmed its commitment to fostering collaboration with the Ghana Revenue Authority (GRA) to address key challenges in the downstream petroleum sector.
A CBOD delegation, led by Board Chairman Mr. Yaw Koduah-Sarpong and CEO Dr. Patrick Ofori, paid a courtesy visit to the GRA Commissioner General, Mr. Anthony K. Sarpong, at the authority’s headquarters.
“The downstream petroleum sector operates continuously, and regulatory processes should align with that reality.
“A shift system for Customs officials would greatly improve efficiency.”
Dr. Patrick Ofori, CEO of CBOD
One of the major concerns highlighted by CBOD was the inconsistent treatment of demurrage costs during tax audits.
According to the delegation, some GRA officials allow companies to account for demurrage expenses, while others do not, creating confusion and financial uncertainty for Bulk Import, Distribution, and Export Companies (BIDECs).
In response, Commissioner General Mr. Sarpong acknowledged the inconsistency and assured CBOD that formal guidelines would be issued to provide clarity.
“We recognize the need for consistency in tax administration. A clear directive on how demurrage costs should be treated will be communicated to all relevant officers.”
Mr. Anthony K. Sarpong, GRA Commissioner General
CBOD also raised concerns over the persistent shortage of GRA-issued seals at fuel depots. This shortage has forced depot operators to bear additional costs by purchasing seals for GRA officials conducting inspections.
The Commissioner General acknowledged the challenge and pledged to resolve it.
“The GRA is committed to ensuring our officers are well-equipped to perform their duties without imposing unnecessary financial burdens on businesses. We will take immediate steps to supply adequate seals to depots across the country.”
Mr. Anthony K. Sarpong, GRA Commissioner General
Another major issue discussed was the delay in processing withholding tax refunds and tax credits. CBOD members expressed concerns over long processing times, which often affect cash flow and business operations.
Mr. Sarpong assured industry players that recent system automation would significantly improve tax credit processing.
“With the automation of our tax system, we expect validated refunds to be paid within a week after a tax audit.
“Companies are also encouraged to apply for withholding tax exemptions, which will be considered on a case-by-case basis.”
Mr. Anthony K. Sarpong, GRA Commissioner General
GRA, CBOD Strengthen Collaboration
In a bid to strengthen engagement with the petroleum sector, the GRA announced plans to organize tax awareness and compliance workshops for CBOD members.
CBOD also pushed for a review of the capital allowance cap under the Income Tax Act, particularly concerning the rising cost of vehicles.
As transportation plays a critical role in petroleum distribution, stakeholders argued that current caps limit the sector’s ability to make necessary investments in fleet expansion and maintenance.
The Commissioner General confirmed that the capital allowance cap is under review as part of ongoing discussions on tax amendments.
“We understand the concerns of industry players, and this matter is being looked into to ensure a fair and sustainable tax framework.”
Mr. Anthony K. Sarpong, GRA Commissioner General
Additionally, GRA will engage CBOD on a proposed tax amnesty and provide clear guidelines on addressing tax-related challenges.
“The GRA remains committed to working closely with CBOD and other industry stakeholders to enhance efficiency and transparency in the tax system. Open dialogue is key to achieving a business-friendly regulatory environment.”
Mr. Anthony K. Sarpong, GRA Commissioner General
The meeting between CBOD and the GRA Commissioner General signals a proactive step toward resolving longstanding tax and operational concerns in Ghana’s downstream petroleum sector.
With assurances of policy reviews, automation-driven improvements, and strengthened collaboration, industry players are optimistic that these engagements will yield positive outcomes for both regulators and businesses.
CBOD reiterated its dedication to advocating for its members and fostering a conducive business environment through continuous engagement with the GRA and other relevant stakeholders.
