The Institute of Economic Affairs(IEA) has described as unwarranted, the decision by government to slap 17.5 percent tax on petroleum products.<\/p>\n
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.<\/p>\n
[contextly_sidebar id=”Te0DphNXIvnBYPxXUQJWGansEZiIrUdr”]Speaking\u00a0at 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\u00a0Ghanaians who pay tax are already overtaxed.”<\/p>\n
“Petroleum products are already overtaxed,… therefore imposing a new tax is unwarranted, considering the expected knock-on effects on the economy,” Mr. Kwakye added.<\/p>\n
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.<\/strong><\/a><\/span><\/p>\n The IEA is not the first to criticise the implementation of the 17.5 percent tax on petroleum products.<\/p>\n A Private Legal Practitioner, Yaw Oppong has described as unconstitutional, the decision by government to lay the bill before Parliament for approval.<\/p>\n Speaking on last Saturday\u2019s News Analysis Programme, The Big Issue, the legal practitioner said \u201cto take a portion of the appropriation of the bill meant for next year and \u00a0actually implement it this year is contrary to the clear provision of the constitution.\u201d<\/p>\n