Eliminate 23% of the LPG tax – Retailers in the government

Company News of Thursday, July 25, 2019

Source: Myjoyonline.com

2019-07-25

Liquefied petroleum gas (LPG) retailers are calling on the government to remove the 23% tax on fuel.

The Ghana LPG Marketing Association wants Finance Minister Ken Ofori Atta to take advantage of next week's mid-year budget review to help Ghanaians.

"We note with great concern that the product that was previously subsidized currently has a price increase of more than 23% taxes.

"For example, in 2015, a 14.5 kg LPG bottle cost about 48 ¢ and a charcoal bag, while it also cost 40 ¢, while a charcoal bag now costs 45 ¢ the same LPG cost of 14.5 kg at 80 ¢ ", said the secretary of the Association. Judge Adu Mante, said in a statement released Thursday.

You will find below a copy of the complete declaration:

Finance Minister Ken Ofori Atta is due to present Parliament's Monday mid-year budget review. Millions of Ghanaians hope that the government will present a program that will relieve them.

The government now has a unique opportunity to demonstrate that it is sensitive to the plight of Ghanaians by removing the 23% tax imposed on LPG.

We note with grave concern that the product that was previously subsidized has its price accumulating at the present time at more than 23% of taxes.

For example, in 2015, a LPG bottle weighing 14.5 kg cost about 48 ¢ and a bag of charcoal, while it also cost 40 ¢, while a charcoal bag was worth now 45 cedis, just like the same 14.5 kg LPG cost 80 cedis.

This is clearly at odds with the political decision that has influenced the introduction and the incentive to use LPG: replace wood and other harmful fuels.

At the present time, it is logical to conclude that the LPG market price for low-income homes has been differentiated, which has resulted in a significant decline in product use.

Now, according to the Bottle Recirculation Model (CRM), which is the implementation model of the national LPG policy, the government plans to allow at least 50% of Ghanaians access to safe, clean and safe LPG. environmentally friendly for the domestic, commercial and industrial sectors. use from here 2030.

We say unequivocally that the vision of increasing consumption and encouraging more people to use liquefied petroleum gas is noble and that the government has our full support to implement this great quest.

However, we are concerned that this movement, as wonderful as it may seem, may not come soon. Indeed, in the existing saturated product market, the only way to increase usage is to create access for new users.

Unfortunately, these same new consumers do not have the financial incentive to abandon their cheaper options and to follow the LPG movement because it does not make economic sense. We believe that eliminating taxes will significantly reduce the cost of LPG and allow the ordinary Ghanaian to pay for it.

That is why we call on the government to act immediately in the interest of the Ghanaian people that it has vowed to protect and advance.

Yours, for God and the country.

Sign

Judge Adu Mante

secretary