Government says it will not scrap the Special Petroleum Tax in the price buildup of petroleum products despite intense calls to have it expunged.
Following the recent hikes in prices of petroleum prices where a litre of diesel and petrol are being sold at GH¢5.18 and GH¢5.14 respectively, the Minority in Parliament demanded the immediate abolishing of the Special Petroleum Tax.
According to the Minority spokesperson on Energy, Adam Mutawakilu, the Special Petroleum Tax introduced under the erstwhile Mahama administration has lived its usefulness and must go.
Apart from the NDC, Energy think tanks in the country including the Chamber of Petroleum Consumers Ghana (COPEC) have also called for the abolishing of the special petroleum levy which is pegged at 15 per cent on ex depot price position which translates into 0.53 pesewas per litre thereby meaning Ghanaians pay on each gallon of 4.5 litres; a tax burden of about GH¢2.39p.
But speaking at a press conference Thursday, Deputy Energy Minister Mohammed Amin Adams said the government has already reviewed the special petroleum tax from 17.5—13percent, further converting it from advolurum to specific tax.
“What this means is that it’s now fixed. So if crude oil prices go up, the component of the SPT will remain the same it will not go up. These are some of the pragmatic measures we have put around the SPT to ensure that its effect is minimized for Ghanaians, and so as far as scrapping it completely, the Ministries of Finance and Energy are discussing other options and therefore when a decision is made eventually the people of Ghana will know,” he stated.
On his part, the sector Minister John Peter Amewu said “without government intervention the prices of [petroleum product] today would have been GH¢5.54 per litre for petrol and GH¢5.55 per litre for diesel. So, what it means is that the price we are paying today, if the Mahama led administration is still in force you’ll be paying between 9-10percent higher than the current prices that Ghanaians are paying. I think it’s time you give this government the recognition for caring for the people of this country.”
Source: Ghana/Starrfmonline.com/103.5FM
