Like some observers, Mr. Rockson insists that the Special Petroleum Tax should be scrapped completely.

[contextly_sidebar id=”bVHXW71p9m0DJ6jNYRw5tplRtgOJfPJB”]”When you look through the price build up, it is one of the easiest you can take out because, apart from government earning revenues from that, it doesn’t have any special role to play in the price build up,” he said on Eyewitness News.

Mr. Rockson stated that even after the reductions, Ghanaians will continue to suffer in terms of how much they pay for fuel.

“Fortunately, we have had some reduction over the period but it is woefully insignificant. What is 2 percent going to do to the ordinary consumer when prices are currently at GH¢4.57?The excuse that government will lose revenue is untenable because the ordinary Ghanaian cannot continue to suffer in the name of revenue.”

He argued that the tax was needless because, among other things, government’s crude oil price benchmark at the time it was introduced was $57.5 per barrel but it has since exceeded this benchmark with $60 so “the special petroleum tax does not have a place today in the current system because we don’t have the same problem we had a few years ago.”

Parliament, on Thursday, passed the Special Petroleum Tax Amendment Bill to reduce the levy on petroleum products by two percent.

This was after recent protests against the rising cost of fuel, as well as calls from the Minority NDC MPs, whose government introduced the tax in 2014, for it to be scrapped.

ICU urges patience

The Industrial and Commercial Workers Union (ICU) was more receptive towards the reduction.

Also speaking on Eyewitness News, the ICU’s General Secretary, Solomon Kotei, remarked that “any relief that comes by way of price drops, industry obviously gets some relief in terms of what they also use the fuel for.”

Although his union had called for the scrapping of the tax, Mr. Kotei said he was satisfied because the government was on the right trajectory.

“We were praying and pushing for a total scrap. But if we didn’t get the scrap and this is the second time running government is reducing the same special petroleum tax by and additional 2 percent, we think gradually, that element will go out of the price programme and all Ghanaians will get that feel at the appropriate time… It goes to prove that our agitation and commentary on the issues is right.”

Background

The Special Petroleum Tax Law was passed in 2014 as part of tax measures adopted by the government at the time to increase revenue generation and improve efficiency on revenue collection from petroleum products.

The Tax was initially set at 17.5%, but was reviewed downwards by 2.5 percent in the 2017 budget.

The law authorises the Ghana Revenue Authority to collect the tax, which would be paid into the Consolidated Fund.

The petroleum products to be affected, according to the Finance Ministry include petrol, diesel, liquefied petroleum gas, natural gas and kerosene.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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The demonstration, organized by the Chamber of Petroleum Consumers (COPEC) in collaboration with the Industrial and Commercial Workers Union (ICU), is to force the government to reduce taxes on petroleum products.

The demonstrators were adamant that the government must address their grievances.

Their placards alluded to the New Patriotic Party’s promises to scrap a number of what it described as ‘nuisance taxes’ before coming into power.

“We have been pleading with the government for about a year now and nothing has been done about it.  so we have come here today to plead with President Nana Akufo-Addo to do something about this. he promised that this government was going to be better than the previous one and that is what we are expecting,” a protestor from the Ashanti Region said.

The Executive Director of COPEC, Duncan Amoah has been leading the charge in the media and he had earlier complained that “we are paying close to $5 in order to be able to get petrol to your tank. That clearly is not helping anything. We understand very well that some of the taxes were introduced as windfall taxes at the time that world market prices had dropped so low and Ghana needed a little more revenue in order to be able to cushion the world market prices that have gone down.”

The National Petroleum Authority [NPA], has commented on the protests as being orchestrated in bad faith and ultimately misleading to the public.

The NPA, in a statement, said some interventions in the sector have seen prices rise by just between 0.66 percent and 1.08 percent

“This intervention by the government has brought down the expected increase of petrol’s price for the period 1st – 15th February, 2018 from 5.06% to 2.16% and from 3.60% to 1.26% for diesel. Despite the expected increases above after the intervention, the actual price changes observed on the market at the moment range between 0.66% and 1.08%,” the NPA said in a statement.

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Photos: Roberta Edem Abbeyquaye

By: Michael Ogbodu/citifmonline.com/Ghana

The post COPEC, ICU lead drivers in demo against ‘killer’ fuel prices [Photos] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The demonstration, which is being organized by the Chamber of Petroleum Consumers (COPEC) in collaboration with the Industrial and Commercial Workers Union (ICU), is to force the government to reduce taxes on petroleum products.

[contextly_sidebar id=”sRhl8OiuMsOBq9jliAEebIMeuKpasfP5″]Currently, a litre of both petrol and diesel, goes for GHc4.62 at some major fuel stations.

This is despite assurances from the National Petroleum Authority (NPA) that prices will remain fairly stable at the pumps.

Speaking to Citi News earlier, the Executive Director of COPEC, Duncan Amoah, called on the government to review prices of petroleum products.

“We are paying close to $5 in order to be able to get petrol to your tank. That clearly is not helping anything. We understand very well that some of the taxes were introduced as windfall taxes at the time that world market prices had dropped so low and Ghana needed a little more revenue in order to be able to cushion the world market prices that have gone down.”

“Today, the same dynamics are not at play. Unfortunately, the taxes that were introduced which should have gone by now, are still all in place. Ghana selling petrol above 20 cedis and it is still going up, it cannot be sustained. We need an immediate review of the price build up. We need some reduction. We need some stability in order to plan our spending on petroleum products in the country.”

IES predicts 2% price increase

The Institute of Energy Security (IES), had earlier predicted that prices of fuel may go up by 2 percent in the first pricing window in February, between February 2, 2018, and February 15, 2018.

The IES further attributed the development to the constant rise in crude oil prices which is currently selling at 69 dollars per barrel on the international market, among other factors.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post COPEC, ICU to demonstrate today over fuel price hikes appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Union has described as unsatisfactory, efforts aimed at addressing corruption in the first year of the New Patriotic Party administration.

[contextly_sidebar id=”Hf0qWYtFtwoZoTYAuouh7ltZ7pr1j2Ys”]The ICU, however granted the administration a favorable 80 percent rating.

Speaking to Citi News, the General Secretary of the ICU, Solomon Kotei, said eliminating corruption will be crucial in meeting growth targets.

He explained that the 80 percent rating was “because of the few issues of corruption that came up, and the way they were dealt with. We thought they could have been more professionally handled. We look at the A-plus matter and we also look at the issue that took place at BOST.”

‘Charity begins at home’

Looking into the future, Mr. Kotei said the country would have taken a step forward if citizens also saw persons within the NPP government being prosecuted and not only persons from the past National Democratic Congress [NDC] government.

“If the special prosecutor really is going to rise up, we think that charity begins at home. We want to see that those that fingers are pointed at within the NPP must also be put before this special prosecutor so that we would have a fair balance because corruption is not only in previous governments. It is all over as we have seen,” he said.

President Akufo-Addo assented to the Office of the Special Prosecutor Bill last week to mark the fulfillment of a major campaign promise in the run-up to the 2016 elections.

The Bill defined the modalities for the appointment and operations of the Special Prosecutor, which will have the mandate to investigate and prosecute cases of alleged corruption under the Public Procurement Act 203 Act 63, and other corruption-related offences implicating public officers, political office holders and their accomplices in the public sector.

The NPP has sent out signals to the effect that it will go after corrupt officials within the past NDC government.

But Former President, John Mahama, has said his party members are resolute and unperturbed by the Office of the Special Prosecutor.

He also challenged President Akufo-Addo to show true commitment to the fight against corruption by prosecuting corrupt members of his own government.

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By: Pius Amihere Aduku & Delali Adogla-Bessa/citifmonline.com/Ghana

The post ICU scores NPP 80%; wants Special Prosecutor named quickly appeared first on Citi 97.3 FM - Relevant Radio. Always.

Staff of the Corporation embarked on a demonstration on Monday in protest of their working conditions, and also prevented their management from entering their offices.

The workers among other things demanded an increment in their salaries arguing that they have been denied such increases for the past five years.

Further to these demands, they also called for the immediate removal of the Managing Director of the Corporation, Carol Annang, over what they describe as her poor managerial skills.

They also accused her of reneging on her promise of revamping the institution.

Demo in right direction

Speaking to Citi News, the General Secretary of the Industrial and Commercial Workers Union, Solomon Kotei, in solidarity with the aggrieved workers said the demonstration is in the right direction.

He explained that what triggered the protest is that “last year  [2017] when we came to negotiate [salaries and allowances], management were pleading and telling us all stories and an unprecedented move, [the] workers to management to give them just three percent of their salaries.”

“With this pinch of insult we didn’t even collect a back pay, and we took that hoping that this year, things will organize for us. Then from nowhere we were told of a rebranding of the paper. We thought it will bring some efficiency and profitability to this particular arrangement only for us to surrender to our main competitor.  And as our main competitor to do the printing for us and on a daily basis we don’t pay less than GH17,300, and how much are we making at Times.”

Give us 20%

Mr. Kotei said all they are saying is that “…we are sacrificing every other item on our condition of service; let’s only look at the salary that has been in arrears for many years. This has not been done and once we are asking that give us 20% and let’s live on.”

“Someone will ask 20% of what? Our basic pay is among the lowest we can find in this country. And besides this, people resign and their end of service benefits are not been paid to them. People die and their next of kins are walking here up and down and nothing is being done to them. But yet they find themselves the effrontery to buy themselves vehicles and give themselves over 11 allowances that are paid in the midst of this crisis,” he added.

ICU to engage Labour Ministry

Mr. Kotei however assured that the grievances of the workers will be tabled before the sector Minister for immediate action.

“The issues that we have at hand are such that we will catalogue the issues and take them to the sector Minister as it stands now. We are not putting ourselves before the Labour Commission because we know the structures of this particular enterprise. We will now sit down and allow one person to see the demise of this great institution. What we see as the mismanagement is for us to have a big company like Times and we have only two products. Besides, the Times and Spectator nothing is there for us again,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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