Corporate taxes due to the Ghana Revenue Authority from oil producing companies in Ghana have dropped by 42 percent for the second half of 2019, compared to the first half of the same year.
According to the Petroleum Funds report released by the Bank of Ghana, the state recorded $51 million less in taxes between July and December, compared to January to June of 2019.
The report also revealed that the Corporate Taxes dropped from $121 million to about $70 million between July to December 2019.
A study of the report shows that a company like Tullow Oil did not make any payment in Taxes for the period under review.
This is partly owed to the fact that Corporate Taxes are paid on the profits of companies. Hence failure of the companies to remit corporate taxes imply that some of them were unprofitable within the period under review.
For instance, local and international media reports at the latter part of 2019 showed revealed that Tullow Oil in Ghana was operating under a 30% revenue shortfall. This was due to the company’s failure to meet its production targets.