Government to introduce tax on sanitation and pollution – Kyei-Mensah-Bonsu

The government has announced that it will introduce a sanitation and pollution tax to help solve sanitation problems in the country.

Upon reading the 2021 budget statement, the acting finance minister said that the 10 pesewas sanitation and pollution tax will be incorporated into the proposed fuel tax.

This new rate will be charged on the price per liter of gasoline / diesel under the Energy Sector Levies Act (ESLA).

With this new tax, the government, Osei Kyei-Mensah-Bonsu said, will embark on a number of projects, including the re-engineering of landfills in Kpone and Oti, construction of waste recycling plants and of compost across the country and the construction of more sanitation facilities to speed up the elimination of open defecation.

Other projects are the construction of medical waste treatment facilities to prevent the generation of infectious diseases in particular as part of the coronavirus treatment program, support the fumigation of public spaces, schools, health centers and markets, improve urban air quality and combat air pollution and the construction of final solid and liquid waste treatment and disposal sites.

“Mr. President, these are all very critical investments that must be made for the good and dignity of all Ghanaians. These will ensure sustainable management of sanitation, improve the quality of life and reduce the number of deaths and illnesses due to insufficient sanitation, ”said Mr. Kyei Mensah.

He said the tax will help provide the resources needed to tackle the sanitation challenges and fund the activities the government has planned to clean up the country.

In addition to this, the government is also introducing a Covid-19 health tax of 1% on VAT, a fixed rate scheme (VFRS) and a 1% on the national health insurance tax (NHIL) as part of fiscal measures to help the economy recover.

There will also be an increase in the energy sector recovery tax and road tolls.

Speaking to JoyNews, Buisila South MP Dr Clement Apaak condemned the government’s introduction of new taxes in the 2021 budget statement.

He said that due to the Covid-19 pandemic, it is unfair for the government to put additional pressure on citizens when production is low and personal incomes have declined.