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Business News of Monday, 19 February 2018


2% reduction in SPT ‘unacceptable’ – MP

The Akufo-Addo-led government’s two percent reduction in the Special Petroleum Tax (SPT) is ‘unacceptable’ Mrs Sowa Dela Adjoa, ranking member on Energy and Mines Committee of parliament has said.

According to her, it is embarrassing especially since the governing New Patriotic Party (NPP) promised to scrap the SPT when they were in opposition campaigning for power in the 2016 election.

Speaking on the Executive Breakfast Show (EBS) on Class91.3FM on Monday, 19 February 2018, she told show host Moro Awudu that: “I’m embarrassed because if you say something, I think morally you must abide by it. Now if you go out and say special petroleum tax is insensitive, is a nuisance and unnecessary and then you’ll scrap it when you come to power, and then you come to power, one year on, you’ve collected that same revenue without scrapping it, and then people start making noise and you say, I’ve reduced it by two percent, for me, I think it’s unacceptable and it embarrasses me as a politician.”

Member of Parliament for Ellembelle and former Minister for Petroleum, Mr Emmanuel Kofi Armah Buah, has also said government could have done better in the reduction of the SPT.

He believes that the current exigencies in the petroleum sector across the international market should have informed the government to reduce the tax by a wider margin.

Meanwhile, the Chamber of Petroleum Consumers Ghana (COPEC-Ghana) has also expressed similar sentiment.

Although COPEC-Ghana welcomed the two per cent reduction in the Special Petroleum Tax, it doubts this action will bring respite to Ghanaians.

Parliament on Thursday, 15 February 2018, passed the Special Petroleum Tax Amendment Bill to reduce the tax from 15 per cent to 13 per cent.

The tax was introduced by the National Democratic Congress (NDC) government in 2016 to shore up revenues generated from fuel prices when crude oil prices were low.

However, industry players argue that the tax has outlived its usefulness and should be scrapped.