A 30 peswa tax on fuel is a lazy approach – Duncan Amoah

The Chamber of Petroleum Consumers (COPEC) described the government’s proposed 30 pesewas per liter tax under the Energy Sector Levies Act (ESLA) as a lazy approach to tackling challenges, in particular particularly in the energy sector.

According to its executive secretary, Duncan Amoah, such a development is insensitive, especially as many Ghanaians and their businesses are still reeling from the impact of COVID-19 and there has already been a surge in about 11% of fuel prices in the past two months.

“It’s quite predictable, but again, one would have expected there to be some sensitivity at the time and the fact that Ghanaians and businesses are still under the influence of the COVID-19, ”he said in a Citi News interview.

Osei Kyei Mensah Bonsu, Minister of Parliamentary Affairs and Acting Minister of Finance, during the presentation of the 2021 budget statement to parliament, announced the fuel tax proposals; 10 peswas per liter for diesel and gasoline as a sanitation and pollution levy (SPL) and 20 peswas per liter of gasoline and diesel to be used as a recovery levy from the energy sector to cover charges to the State for excess electricity capacity.

“To provide the necessary resources to meet these challenges and finance these activities, the government is proposing a Sanitation and Pollution Tax (SPL) of 10 peswas on the price of a liter of gasoline / diesel under the Levies Act. in the energy sector (ESLA), ”said the Minister.

“Mr. President, it has become absolutely necessary for the government to consider a revision of taxes on the energy sector. The energy sector recovery tax of 20 pesewas per liter on gasoline / diesel under the ESLA is hereby submitted to this House for approval, ”he added.

But Duncan Amoah challenged the move, urging the government to consider renegotiating the country’s energy deals and stopping frequent payments for excess capacity rather than levying Ghanaians to cover those charges.

“It seems that the more we are taxed, the more these debts skyrocket. Anyone who is negligent is never punished, those who are not end up being asked to contribute much more. It is becoming a disaster for Ghanaians, especially considering the fact that we have seen this kind of increase. In the last two months alone, Ghanaians are already complaining about over 11% of fuel price adjustments and yet the best we can do to those people who are already complaining and reeling from the pressures of the world. COVID-19 is adding an additional 5.7% in statutory taxes to them.

“If you don’t need this excess capacity, go and renegotiate it so that the Ghanaian is not overloaded…. [They must] finding ingenious solutions… It’s laziness, and it’s pretty appalling… It’s clearly not the way to go, ”he said.

Duncan Amoah further urged Parliament not to approve the new levies.

—Citinewsroom