The Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD) has called on the government to initiate a process that will stabilize oil revenue in the country following the gradual rise in crude oil prices.
“So we can hedge against cash settlement where the government rakes in a hedge income…the government will, therefore, reduce the taxes to correspond to the losses in income from crude oil exports,” he told Accra-based Citi FM.
The prices of crude oil have been increasing gradually on the international market for some weeks now.
A barrel of the commodity is being sold at seventy-seven dollars.
This is expected to increase the cost to importing countries like Ghana.
“In addition, the government could implement the crude price threshold which is the politically sensitive price that the government thinks it has. Assuming the CPT is pegged at 75 dollars a barrel, the government reduces the taxes to compensate the loss of tax revenue when the price goes above 75 dollars mark,” Mr. Hosi added.
In a related development, others have suggested that the government resorts to the stabilization fund to cater for the losses in revenue with the implementation of the hedging policies being offered.