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02<br />

CONTENT<br />

DAILY HERITAGE MONDAY, JANUARY <strong>29</strong>, 2018<br />

DAILY QUOTE<br />

Success is the sum of<br />

small efforts, repeated<br />

day-in and day-out<br />

--Robert Collier<br />

ANNIVERSARIES<br />

06 March, Independence Day<br />

30 March, Good Friday<br />

02 April, Easter Monday<br />

Published by: EIB<br />

Network / Heritage<br />

Communications Ltd.<br />

Managing Editor:<br />

William Asiedu:<br />

0208156974<br />

Editor:<br />

Kofi Enchill:<br />

0265653335<br />

ISSN: 0855-52307<br />

VOL 7<br />

Location: Meridian<br />

House (Starr FM) Ring<br />

Road. Box AD 676,<br />

Adabraka, Accra,Ghana.<br />

Telephone: +233-0302-<br />

236051, 020-8156974<br />

026-5653335<br />

Adverts/Mktg: Paul<br />

Ampong-Mensah<br />

024-4360782<br />

Fax: +233-0302-237156<br />

Email:<br />

news@dailyheritagegh.com.gh<br />

heritagenewspaper@yahoo.co.uk<br />

www.dailyheritage.com.gh<br />

WORLD<br />

'Thousands flee DR<br />

Congo into Burundi'<br />

in two days<br />

POLITICS<br />

Stop politics of insult<br />

• Awuku tells<br />

aspirants<br />

BUSINESS<br />

PG.04<br />

Voltic gets new<br />

packaging plant<br />

SPORTS<br />

PG.11<br />

I convinced Kenedy to<br />

join Newcastle<br />

—Christian Atsu<br />

PG.10<br />

PG.15<br />

Review petroleum taxes<br />

BY ROSEMOND<br />

BOATENG ADDAI<br />

rosemond.adjetey@yahoo.com<br />

THE CHAMBER of Petroleum<br />

Consumers<br />

(COPEC) Ghana has<br />

challenged the government<br />

to, as a matter of urgency,<br />

give Ghanaians some relief<br />

by reviewing the numerous taxes in the<br />

petroleum pricing build-up to bring<br />

about some stability and reductions to<br />

ease the pressure on them.<br />

Mr Solomon Kotei, General Secretary<br />

of Industrial and Commercial Workers<br />

Union, briefing the press last Friday, encouraged<br />

the government to rather introduce<br />

new and ingenious ways of<br />

expanding the tax bracket to attract more<br />

revenue than the over-concentration on<br />

the petroleum taxation.<br />

"The government must proactively<br />

explore other revenue-generating sources<br />

for national development as the over-dependence<br />

on petroleum taxation affects<br />

every aspect of our lives and that of the<br />

economy generally because of its chain<br />

effects, not even the size and price of<br />

kenkey is spared," he stated.<br />

Mr Kotei added that the current situation,<br />

if not urgently addressed by the<br />

government, will leave Ghanaians with<br />

having to cough up even more cash to be<br />

able to go by their daily activities in the<br />

face of harsh conditions of living to pay<br />

for further increases in petroleum products<br />

in February.<br />

• COPEC urges govt<br />

•Mr Boakye Agyarko, Energy Minister<br />

Scrapping of SPT<br />

According to the General Secretary,<br />

what is even troubling is that close to<br />

50% of the total cost of fuel in Ghana at<br />

the pumps is nothing but one tax or another<br />

with the Special Petroleum Tax<br />

(SPT) alone pegged at 15% on ex-depot<br />

price position which currently translates<br />

into 0.53p per litre, thereby meaning<br />

Ghanaians pay on each gallon of 4.5<br />

litres a tax burden of ¢2.39p.<br />

He pointed out that COPEC-Ghana<br />

considers the Special Petroleum Tax<br />

(SPT) as not only a nuisance but avoidable<br />

in the face of rising prices on the<br />

world market as this tax was introduced<br />

in 2015 to shore up some revenue at the<br />

time when international market prices<br />

had dipped below $30/barrel.<br />

He further stated that the reduction<br />

by the current government of the SPT<br />

from 17.5% to 15% as was contained in<br />

the 2017 budget was simply mathematical<br />

as in reality the actual value has rather<br />

shot up over the past due to rising prices<br />

on the international market without any<br />

attempts to scale them down further.<br />

He said, “We call for the immediate<br />

removal of this particular tax and others<br />

as contained in our earlier petition to the<br />

president in order to reduce the unnecessary<br />

pressures on our pockets and to also<br />

help stabilise the pockets and incomes of<br />

Ghanaian workers and the generality [of<br />

the public] .”<br />

“The SPT must be scrapped and the<br />

government must no longer hesitate to<br />

do what is fair and just for the ultimate<br />

good of Ghanaians. We are also mindful<br />

of several other avoidable taxes on the<br />

price build-up and once again reiterate<br />

our call for a further downward review<br />

of some of the tax elements contained<br />

in the petroleum pricing build-up as we<br />

believe the government equally makes<br />

some serious gains or incomes with the<br />

surge in world market prices since<br />

Ghana is also a crude-producing country<br />

that enjoys all the positives with any increases<br />

on the international market,” he<br />

added.<br />

The group believes a gallon of petrol<br />

and diesel at the pump should not be<br />

sold beyond ¢18.00 compared with the<br />

current unbearable rate of above<br />

GH¢20/gallon.<br />

COPEC advised the government to<br />

work proactively with all stakeholders as<br />

partners and collaborate with them in<br />

finding lasting solutions to the precarious<br />

petroleum issues such that the interest<br />

of the average Ghanaian consumer<br />

is protected and safeguarded at all times.<br />

Cedi depreciation<br />

The group also stated that another<br />

worrying development that is compounding<br />

frequent increases in petroleum<br />

products is the depreciation of the<br />

cedi.<br />

According to them, anytime the cedi<br />

loses value to the dollar and other international<br />

currencies amidst rising and unstable<br />

global oil prices, the ex-refinery<br />

prices of petroleum products increase.<br />

They said, “Fuel, which was sold at<br />

the pumps for GH¢3.630/litre or GH¢<br />

16.30/gallon in December 2016 is now<br />

being sold for GH¢ 4.630/litre or<br />

GH¢20.85/gallon, representing 27.9% or<br />

28% net increases over the past one year.<br />

One cannot discount how the depreciation<br />

of the cedi has largely affected these<br />

increases.

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