The Finance Minister, Ken Ofori Atta, has announced an increment in the Energy Sector Levies.
Presenting the 2019 midyear budget review to Parliament on Monday July 29, Mr. Ofori Atta announced that Ghanaians will have to pay GHp20 more for a litre of petrol and diesel and GHp 8 more for a kg of LPG.
“Mr. Speaker, you may recall that Government in 2017 issued the Energy Sector Levy Act (ESLA) Bond, which has, to date, raised almost GHS 6 billion on the back of ESLA levies to pay for legacy debts from the NDC’s “dumsor days”.
“The bond proceeds were used to liquidate approximately 60% of the energy sector legacy debts. Government proposes to increase the Energy Sector Levies by GHp 20 per litre for petrol and diesel and GHp 8 per kg for LPG, so as to increase the inflows to enable Government issue additional bonds to pay down our energy sector debt obligations.
“Based on current indicative prices for petrol and diesel this translates to GHp 90 per gallon.”
Government has also announced that it is increasing Communication Service Tax (CST) to nine per cent.
The move, according to Mr. Ofori Atta was to develop the foundation for the creation of a viable technology ecosystem in the country.
“This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes,” he said on Monday when he delivered the government’s mid-year fiscal policy review of the 2019 budget statement and economic policy &supplementary estimates.
“The increase will not be earmarked, however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving,” he added.
The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six per cent. The tax is levied on charges payable by consumers for the use of communication services.
Meanwhile, the Finance Minister announced the withdrawal of the luxury vehicle levy after massive public outcry.
“Mr Speaker, as a listening Government, we are proposing to the House, the withdrawal of the levy. We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” Mr Ofori Atta said.
Source: Ghana/Starrfm.com.gh/103.5FM
