The Institute of Economic Affairs(IEA) has described as unwarranted, the decision by government to slap 17.5 percent tax on petroleum products.
According to the IEA, the decision was ill-advised considering the reduction in price on fuel on the world market and the gradual stability of the cedi.
[contextly_sidebar id=”Te0DphNXIvnBYPxXUQJWGansEZiIrUdr”]Speaking at an IEA press conference on the 2015 budget statement , a senior research fellow of the IEA Dr. John Kwakye said the decision “is not the right way to go because Ghanaians who pay tax are already overtaxed.”
“Petroleum products are already overtaxed,… therefore imposing a new tax is unwarranted, considering the expected knock-on effects on the economy,” Mr. Kwakye added.
The National Petroleum Authority (NPA) has however explained that the imposition of the 17.5% tax on petroleum products will result in only a 3% increase in petroleum prices.
The IEA is not the first to criticise the implementation of the 17.5 percent tax on petroleum products.
A Private Legal Practitioner, Yaw Oppong has described as unconstitutional, the decision by government to lay the bill before Parliament for approval.
Speaking on last Saturday’s News Analysis Programme, The Big Issue, the legal practitioner said “to take a portion of the appropriation of the bill meant for next year and actually implement it this year is contrary to the clear provision of the constitution.”
Parliament passed the 17.5 percent tax bill on petroleum products last Wednesday though the Minority in Parliament opposed the decision.
The implementation of the tax bill has angered Ghanaians with some calling on government to reverse its decision.
By: Marian Efe Ansah/citifmonline.com/Ghana