New taxes on petroleum products unfair – Moses Asaga

A former Chief Executive Officer of the National Petroleum Authority (NPA), Moses Asaga has criticised the government for introducing new tax policies in the 2021 budget statement.

Three of the new taxes which took effect on Saturday are as a result of the imposition of an Energy Sector Recovery Levy of GHS 20 pesewas per litre on petrol/diesel, 18 pesewas per kg on Liquefied Petroleum Gas (LPG) and a Sanitation and Pollution Levy of GHS10 pesewas per litre of petrol and diesel.

Petroleum consumers are expected to pay more for fuel at the pumps, following the introduction of these taxes.

Mr. Asaga said it will be unfair for consumers to pay more for fuel as a result of the new taxes.

He believes there should be an alternative way of raising more funds.

“Right now we know prices have not really changed. First of all, to say that you want to increase the prices which are just based on institutional pricing is quite unfair to consumers. I do agree that there is a minimum we should all pay for but if they are now using it as the only source, I do not think they are fair to the good people of Ghana.”

The decision to introduce new taxes has generated huge controversy with many Ghanaians complaining that it will bring untold hardship on them especially as they are yet to recover from the effects of the COVID-19 on their personal economies.

Fuel prices have already risen by some 11% in the last two months and the new taxes could make an additional 5% rise in taxes which will be borne by consumers.