Marketers of Liquefied Petroleum Gas (LPG) in the country say they are disappointed over the introduction of a new tax on the product.
They say the development will have negative consequences on their businesses and will worsen the finances of consumers.
The Vice Chairman of the LPG Marketing Companies Association of Ghana, Gabriel Kumi, in an interview on Eyewitness News, said the industry will be crippled by the new tax, which will make LPG more expensive.
“We are very disappointed, to say the least. We have always held the view that Ghanaians are paying too much for LPG. Throughout Africa, we don’t know of any country that pays more than $1 for a kilo of LPG but in Ghana, we are paying GH¢6.30 already and, with the introduction of this tax, we are due to pay GH¢6.48 for a kilo of LPG. We believe that this is too high and harsh for the ordinary consumer to bear. This will cripple the LPG sector, lead to unemployment and create a lot of hardship for Ghanaians. We are opposing this tax,” he stated.
The Ghana Revenue Authority (GRA) on Tuesday, April 20, 2021, indicated that taxes announced in the 2021 budget, including the one on LPG, are set to take effect on May 1, 2021.
The imposition of an Energy Sector Recovery Levy of GHS 20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG) has already generated controversy, with some analysts saying that it will lead to a general increase in the price of commodities.
The LPG marketers, following indications of the government’s intention to introduce the tax on the product, petitioned President Akufo-Addo over the matter, urging him to rescind the decision.
They also held meetings with the Energy Ministry on the matter but with the GRA’s statement, it is evident that those meetings did not yield a positive result.