Prime News Ghana

New levy on fuel disappointing - COPEC

By Justice Kofi Bimpeh
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The Chamber of Petroleum Consumers, COPEC has described the government’s proposed 30 pesewas per litre levy under the Energy Sector Levies Act (ESLA) as disappointing.

According to COPEC, Ghanaians were expecting plans from the government to stabilise the economy but not to introduce new taxes and levies.

"If you consider that Ghanaians have had...increases within the past two months and were expecting to hear government's plans on stabilising fuel prices for them only to be greeted with new taxes it is not just shocking but disappointing, to say the least."

"Parliament should do anything within their powers to block this position from the Finance Minister." Chief Executive of COPEC Duncan Amoah said in a radio interview.

Osei Kyei-Mensah-Bonsu, the Minister for Parliamentary Affairs and caretaker Minister for Finance while delivering the 2021 budget statement in Parliament announced the tax proposals on fuel; 10 pesewas per litre for diesel and petrol as Sanitation and Pollution Levy (SPL) and 20 pesewas per litre of petrol and diesel to be used as Energy Sector Recovery Levy to cover charges on the State for excess capacity of power.

“To provide the requisite resources to address these challenges and fund these activities, Government is proposing a Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA),” the Minister said.

“Mr. Speaker, it has become very necessary for Government to consider a review of the energy sector levies. The Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA is hereby submitted to this House for approval,” he added