Updates on the Special Tax on Petroleum Products

SCDP and SONARA have been assigned to collect by deducting at source the Special Tax on Petroleum Products. According to the 2021 Finance Law, SCDP is to deduct at source “during removal by distributing companies, while SONARA does the same for “deliveries to natural persons other than distributing companies”.

According to the Law, the amount collected “shall be transferred to the tax collector with territorial competence” and the information transmitted within five days following the deadline for payment.

Updates on the Special Tax on Petroleum Products

• Marketers who fail to pay the Special Tax on petroleum Products within the time-limits put in place shall not be allowed to collect petroleum products from SCDP or SONARA.
• The collecting companies will have to transmit the information to the tax authorities who in turn, will come up with the tax owed by the taxpayer.
• The collecting companies are obliged to transmit the information to their tax centers within the five (5) days following the deadline for payment.
• The information transmitted should have the list of marketers who have defaulted payment and the amounts they owe.
• Once the debt is established, a Collection Notice or forced recovery measures will be initiated against the marketers who are liable for the Special Tax on Petroleum Products.
• Since SCDP and SONARA are the legal debtors for the tax, failure to notify the tax centers may lead to the issuance of a Collection Notice and forced recovery measures will be implemented.

Rates of the Special Tax on Petroleum Products

The Special tax on Petroleum Products have been put as follows:

• Premium grade petrol (what is commonly called “Super”) = XAF110 per litre
• Gas-oil (diesel) = XAF65 per litre

SCDP and SONARA are obliged to transfer the amount collected every month no later than the 20^th of each month for the previous month. They also have to present the tax return made by the tax payer.

Read Also: Exemption for Local Purchases of Petroleum Products by Marketers

The proceeds of this tax is allocated to the Road Fund in accordance with the annual ceiling put in place by the Finance Law. This amount according to the General Tax Code, is deposited by the State Treasury in an account opened in the Bank of Central African States, BEAC.

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