Savannah Development backs calls for scrapping of Special Petroleum Tax

The Executive Director of Policy Think Tank, the Savannah Development, Abu Kabienbata Kasambata, has backed calls by the Chamber of Petroleum Consumers-Ghana (COPEC) and Industrial and Commercial Workers Union (ICU) on government to scrap the Special Petroleum Tax.

There has been mounting pressure on government by COPEC, ICU and some labour unions to scrap the Tax to mitigate the frequent fuel price hikes in the country.

COPEC and ICU staged a two-hour demonstration on February 7, 2018 to protest the frequent hikes in fuel prices.

Executive Director of COPEC, Duncan Amoah during the demonstration called for the outright scrapping of the Special Petroleum Tax because, according to him, it had crippled most businesses and brought untold hardship on Ghanaians.

Mr Kasambata, said the New Patriotic Party (NPP), while in opposition, described the tax as nuisance but has failed to scrap it, a position he described as hypocritical.

The Energy Sector Levies Act, 2015 (ESLA) Act 899 was enacted in 2015 to “consolidate existing energy sector levies to ensure efficient utilisation of proceeds generated from the levies, impose a price stabilisation and recoveries levy to facilitate sustainable long term investments in the energy sector, and to provide for other related matters.

Speaking to radiotamale.com, the executive director of Savannah Development asserted that government was unwilling to scrap the tax because revenue realized from it is used to fund the free Senior High School policy, One District One Factory, one village one dam among other government policies.

He said if government cannot scrap the levy it must be able to reduce it from 15 per cent to at least eight percent.

By: Alhassan A Ibrahim, radiotamale.com

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