GUPC: Growth and Sustainability Levy contradicts petroleum agreement, may trigger litigation
The Ghana Upstream Petroleum Chamber has warned that the government’s proposed Growth and Sustainability Levy could result in international court action as it violates provisions in petroleum agreements.
The Chamber is concerned with government’s determination violate these provisions in order to raise funds through what it calls “crippling taxation.”
In a statement issued on March 22, 2023 the Upstream Petroleum Chamber while expressing these concerns, also urged the government to reconsider the implementation of the said levy, particularly at a time when the country is struggling to attract new investments in oil and gas exploration.
It indicated that “the industry considers this levy as the latest in a series of crippling taxation that is affecting the economic balance of petroleum agreements.”
Some of these taxes include, “the COVID-19 Recovery Levy, Ghana Education Trust Fund Levy, National Insurance Levy, the 1% Local Content Fund Levy and several others,” the said disclosed.
It explained that “this new tax disregards the importance of the preservation of contract sanctity to the promotion of new investment.
“The unpredictability of the fiscal terms of our petroleum agreements will disincentivize new oil and gas investment at a time when financial institutions are curtailing investment in fossil fuels,” the Chamber added.
Source: Energy Ghana
