Scrap Petroleum Tax To Avoid Fuel Price Increase-COPEC Tells Gov’t

The Chamber of Petroleum Consumers (COPEC) has called on government to as a matter of urgency scrap the Special Petroleum Tax to avoid further increases in petroleum products in February.

According to the Chamber the Special Petroleum Tax (SPT) is not only nuisance but avoidable in the face of rising prices on the world market.

Solomon Kotei, Vice Chair of the council of COPEC in statement said “What is even troubling is that close to fifty per cent of the total cost of fuel in Ghana at the pumps is nothing but one tax or the other with Special Petroleum Tax alone pegged at 15% on ex deport price position which currently translate into 0.53 pesewas per litre thereby meaning Ghanaians pay on each gallon of 4.5litres; a tax burden of 2 cedis and 39 pesewas (GHS 2.39p)”.

He paid the tax was introduced in 2015 to shore up some revenue at the time when international market prices had dipped below $30/barrels.

“One wonders why this particular tax has not been scrapped altogether since world market price started picking from late  2016, we find this particular tax very unsustainable at current levels of above $60/barrels.

He called for immediate removal of SPT and others in order to reduce the unnecessary pressures on Ghanaians and to also help stabilize the pockets and incomes of workers.

Taxes On Price Build Up

“We are also mindful of several other avoidable taxes on the price build up and once again reiterate our call for a further downward review of some tax elements contained in the petroleum pricing build up as we believe government equally makes some serious gains or incomes with the surge in world market prices since Ghana is also a crude producing country that enjoys all positives with any increases on the international market”, Mr. Kotei said.

He said “From the foregoing, Copec believes a gallon of petrol and diesel at the pump should beyond 18 cedis instead of the current unbearable rate of above Ghc20/gallon.

Mr. Kotei said Government as a matter of urgency must need give Ghanaians some relief by reviewing the numerous taxes in the petroleum pricing build up to ease the pressures on our pockets.

He encouraged Government to rather introduce new and ingenious ways of expanding the tax bracket to more revenue than over-concentration on Petroleum taxation.

Source: Businessdeskreport