The Ghanaian Liquefied Petroleum Gas (LPG) Marketers Companies Association is urging the government to rethink the recently announced 18-pesewa increase in the price of a kilogram of LPG.
According to the group, the tax would exacerbate shoppers’ predicament and, as a result, reduce their usage of the commodity.
The tax is still alien, according to the group, since it was not included in the 2021 budget statement.
Gabriel Kumi, Vice Chairman of the LPG Marketing Companies Association of Ghana, described the decision as blunt and inconsiderate in an interview with Citi News.
“We are very much aware that the government has set up an objective to increase the penetration of LPG from the current 25 percent to 50 percent by the end of the year. But we believe that the current price of the product will make the attainment of that goal impossible.”
LPG is currently sold for GHS 6.30 per kilo, according to Mr. Kumi, which is “about the best in West Africa.”
“Which is why we are shocked that the government will like to go ahead and impose more taxes in order to defeat its own goal of increasing LPG penetration in Ghana,” he said.
Under the Energy Sector Levies Act, Ghanaians are now required to pay higher taxes on petroleum goods, such as the Sanitation and Pollution Levy, which is 10 pesewas on the price per litre of petrol/diesel (ESLA).
The COVID-19 Health Levy of 1% on the VAT Flat Rate Scheme and 1% on the National Health Insurance Levy (NHIL) is another proposed tax in the budget as part of revenue steps to aid the economy rebound from the impact of the coronavirus pandemic.
Source: ATLFMNEWSROOM
