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Business News of Wednesday, 24 November 2021

Source: www.ghanaweb.com

Here’s how much tax you pay for every litre of petrol you buy

Fuel prices have increased twice in only November this year Fuel prices have increased twice in only November this year

1.90p is paid as tax by patrons of petrol in Ghana

Transport operators make incessant calls for energy sector taxes to be reduced

Fuel prices have increased twice in only November this year


Did you know that for every litre of petrol you buy in Ghana, you pay 1.90pesewas as tax?

Below is a breakdown of the various taxes that make up fuel prices.

Energy Fund levy (1p)

Sanitation and pollution levy (10p)

Price stabilization and recovery levy (16p)

Energy sector levy (20p)

Special petroleum levy(46p), Road fund levy (48p)

Energy debt recovery levy (59p)

Earlier this year, Parliament approved the Energy Sector Levies (Amendment) Bill, 2021 to address challenges in the energy sector and sanitation issues.

The Act, which amends the Energy Sector Levies Act, 2015 (Act 899), provides for an Energy Sector Recovery Levy and Sanitation and Pollution Levy.

According to the Ministry of Finance, proceeds from the Energy Sector Recovery Levy would be utilized to meet the funding shortfall occasioned by the inability of the Electricity Distribution Companies to cover the cost of power supplied by power producers and associated capacity cost.

Likewise, revenue generated from the road fund levy will be used to support road maintenance whiles the price stabilization and recovery levy will be used as a buffer for under-recoveries or subsidies to stabilize petroleum prices for the consumer

Additionally, the Sanitation and Pollution Levy being imposed on specific petroleum products is to provide funds to support programmes to improve air quality and provide sustainable funding for the collection, treatment and disposal of liquid and solid waste.

Some oil marketing distributing companies have increased prices of fuel at the various pumps twice in November alone.

Transport operators and households have lamented the tax burden on Ghanaians saying the rippling effect is the high cost of living in the country.

They want the government to scrap some of the taxes.

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