Ghana is not likely to take home the GH˘384million Corporate Tax component of projected revenues from the oil sector for 2012, Mr. John Peter Amewu, a Research Fellow with the African Centre for Energy Policy, has said.
This, he said, is because the country is not being realistic about its benchmark revenues from the Jubilee project.
“Until we begin to look well into our estimation processes in terms of arriving at benchmark revenues, we will always get it wrong,” he noted.
Speaking to a group of journalists at a training workshop in Accra, Mr. Amewu said the issues of capitalisation, overestimation of production and benchmark revenues that made the Jubilee partners pass-up corporate taxes for the year 2011 are still around.
The Jubilee Field is still said to be producing at about 80,000 barrels of oil per day, which is 35,000 barrels short of the plateau level of 120,000 barrels per day earlier projected to have been reached by now.
“We are forcing revenue that is not achievable,” Mr. Amewu said, and called for the country to take a critical look at its oil revenue estimation processes.
The 2012 budget projected the total oil receipts for the 2012 fiscal year at GH₵1,239.82million based on an estimated average oil price of US$90.00 per barrel and daily oil production of 90,000 barrels per day. This amount comprises royalty payments of GH₵236.87million, income from government Carried and Participating Interest of GH₵618.84million, and Corporate income tax of GH₵384.11million.
This will be the second time since oil production began that the country has failed to benefit as anticipated from the sector’s corporate tax.
In 2011 Government projected to receive GH˘1.2billion from oil, including corporate taxes of about GH˘600million.
The total amount earned, however, came down to GH˘667million, representing a shortfall of GH˘583million. The Jubilee partners attributed this shortfall to the country’s inability to meet the 120,000 barrels of oil per day target.