Member of Parliament for Pru East and a former Minister for Power, Dr. Kwabena Donkor, has accused the Minister for Finance and government of deception, following the announcement of a 15 pesewas reduction on a litre of fuel.
Dr. Donkor in a write-up in reaction to the Minister’s press conference on Thursday explained that the margins on the petroleum price build-up that have been reduced to arrive at the 15 pesewas does not in any way affect government’s revenue.
The above are the taxes that go directly to Government and none of the above has been reduced by a Cedi.
“How can Ken Ofori-Atta look Ghanaians in the face and say we should share the burden when Government is obviously not taking a hit? None of the four items affects Central Government or revenue.”
The taxes that go directly to government have not been reduced by a Cedi, he explained.
Please read the full write-up below.
The Finance Minister announced the following reduction in the margins of the price buildup of petroleum prices today the 24th March 2022:
a. BOST Margin- 2p on a litre
b. UPPF- 9p on a litre
c. Fuel Marking- 1p on a litre
c. Primary Distribution Margin- 3p on a litre.
The total reduction announced amount to 15p per litre. It is worth noting that none of the four items affects Central Government or revenue. BOST is a limited liability company whose margin is not tax revenue to government.
For the avoidance of doubt let me list the government taxes and levies embedded in the petroleum price buildup:
- Energy Debt Recovery Levy (49p on petrol and diesel per litre, 41p/kg on LPG)
- Road Fund Levy 48p on pet/diesel
- Price Stabilization and Recovery Levy 16p on petrol, 14p on diesel 14p on LPG
- Energy Fund Levy 1p on petrol, diesel, kerosene
- Sanitation and Pollution Levy 10p on petrol and diesel
- Energy Sector Recovery Levy 20p on petrol and diesel and 18p on LPG
- Special Petroleum Tax 46p on petrol, 39p on kerosene, 46p on diesel 48p on LPG.
The above are the taxes that go directly to government and none of the above has been reduced by a Cedi. How can Ken Ofori Atta look Ghanaians in the face and say we should share the burden when Government is obviously not taking a hit?
The Special Petroleum Tax was introduced when petroleum prices dropped to a historic low in November 2014 to take effect in January 2015. The then Minority (now Majority) staged a walk out on it. It should be the first to go with the current level of petroleum prices.
The Minister is engaged in an exercise of deception and he is absolutely being disingenuous and dismissive of the intelligence of sector players (both in and out of government) and the Ghanaian Consumer.
Kwabena Donkor Ph.D.
MP for Pru East