The GRA engaged SML to monitor petroleum liftings and ensure accurate reporting for tax purposes by oil marketing companies (OMCs). However, differing analyses have led to varying conclusions about the impact of SML’s services on petroleum volumes and tax revenue.
KPMG’s report, released on April 24, 2024, revealed that SML’s work resulted in closing a petroleum lifting volume of 1.7 billion liters and generating tax revenues of approximately GH¢2.45 billion from May 2020 to December 2023. The report also highlighted legal and governance breaches related to the award of SML’s contract.
Civil Society Organizations (CSOs) and investigative journalist Manasseh Azure Awuni have challenged KPMG’s findings. They argue that no increase in volumes benefited from SML’s work, and therefore, no tax revenue was derived .
SML itself has vehemently disagreed with KPMG’s conclusions, asserting that its services contributed to an incremental petroleum lifting volume of 10.3 billion liters and incremental tax revenues of GHS14.8 billion.
The crux of the matter remains: Did SML’s services effectively close the gap between petroleum lifting reports submitted to the National Petroleum Authority (NPA) for consumption analysis and those reported to GRA for tax purposes?
In summary, transparency and accountability are paramount in resolving this issue. The full disclosure of the KPMG report remains contentious, and stakeholders continue to debate the impact of SML’s services on Ghana’s tax revenues.
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