January 29
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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.