The Minority in parliament is calling on government to immediately abolish the special petroleum tax imposed on petroleum products, withdraw “nuisance taxes imposed on LPG” and review the sanitation levy by resorting to the polluter pay mechanism.
“The Special Petroleum Tax imposed on petroleum products must be suspended in the 2022 budget to provide some respite for Ghanaians from the agonizing high cost of fuel at the pump. We make this demand because crude prices which were pegged at a bench-mark price of $54.75 dollar per barrel in the 2021 budget statement has risen to over $85 representing an increment of over 55%”. – Mr. John Jinapor
According to the minority, such a move will reduce the economic burden on the ordinary Ghanaian, as the prices of petroleum products affect everything in the market.
Addressing the media, the minority spokesperson on mines and energy, Mr. John Jinapor disclosed that “within a spate of just one year, fuel prices have risen from GHS4.77 per litre to GHS6.8 per litre representing a whopping 43% increment under this insensitive government. These astronomical increases have resulted in untold hardship which is threatening lives of ordinary Ghanaians.”
He said “The Minority has equally taken notice of the lame and flimsy excuse from government and its communicators that they cannot do much to cushion Ghanaians because in their own words ‘they do not control the world market price of crude’. What they have failed to inform Ghanaians about is that the devaluation of the cedi is a major contributor to these astronomical increases.”
He added that the Minority will not countenance any further tax increases or the imposition of new ones in the 2022 budget.
The minority argues that the price buildup of petroleum products at the pump is as a result of taxes and levies which account for almost 40 per cent of the final ex-pump price.
Mr. Jinapor further noted that “the attempt by the government to blame world market prices of crude for this high fuel cost is untenable. Following the additional increment of the Energy Sector Recovery Levy of 20 Pesewas, and introduction of the Sanitation and Pollution Levy of 10 Pesewas in the 2021 budget as well as increment in margins fuels prices jumped by about 12.48% between the last pricing window of April to the 1st window of May. The almost 13% increment in fuel prices arising from these aforementioned tax handles cannot be attributed to world crude prices”.
Despite the introduction of a sanitation levy of 10 pesewas per litre of fuel, the minority said “the country continues to be engulfed in filth with poor management of garbage across the various towns and cities of the country”.
They, therefore, call for a review of the sanitation levy by resorting to the polluter pay mechanism which is a more pragmatic way of managing waste. “It is untenable to tax the ordinary fuel consumers since the consumption of same does not contribute to the waste being generated daily”.
According to the minority, the debt of the Ghana Gas Company alone has ballooned to almost $1 billion. “The cost of LPG today continues to be astronomically high with its accompanying high tax handles thereby compelling some would-be consumers to resort to biomass such as wood-fuel, cow-dung, and charcoal as their primary source of fuel”.
“We, therefore, demand that the Finance Minister, Mr. Ken Ofori-Atta, take the necessary step by withdrawing the nuisance taxes imposed on LPG during the presentation of the 2022 budget. Failure to do so shall compel the Minority to use every legitimate parliamentary means to ensure the right thing is done”. Mr. Jinapor added