President John Dramani Mahama\u00a0has stated that his government’s\u00a0decision to introduce the Energy Sector Levy Law which culminated in\u00a0an astronomical increases in taxes and subsequently affected\u00a0prices of petroleum products, was a tough decision but very critical.<\/p>\n
Addressing Parliament in a\u00a0State of the Nation address on Thursday, President Mahama defended the passage of the controversial law; saying the decision was needed to protect state intuitions sinking under huge debts.<\/p>\n
According to him, the Volta River Authority, (VRA), the Ghana Grid Company \u00a0(GridCO) and the Electricity Company of Ghana, all owe colossal sum\u00a0of legacy debts that could collapse Ghana\u2019s power sector if not redeemed.<\/p>\n
[contextly_sidebar id=”VEFHYCnfVAn2m3XtRQdaWogvoxraxcWX”]\u201cThe reality is that, while some subsidies have been paid over the years, perennial budget constraints and numerous competing demands have made it virtually impossible for successive governments to meet this obligation\u201d, he said.<\/p>\n
He warned that the alternative to not acting would have meant\u00a0a total collapse of the power sector of the country.<\/p>\n
He lauded parliament for passing the law, stating that the move will help Ghana solve its energy challenges permanently.<\/p>\n
Fuel prices at the pumps went up by between 22 percent and 27 percent, following the passage of the Energy Sector Levy by Parliament in December 2015.<\/p>\n
The price of LPG also went up by about 18 percent<\/p>\n
The move angered labour unions, who\u00a0organized its members to hit the streets in protest.\u00a0But\u00a0President Mahama maintained that although the law seemed to have increased the cost of living of Ghanaians, the opposite would have been far detrimental.<\/p>\n
He stated that the move to nib the challenge in the bud, is also aimed at halting the ripple effects the debt is having on major financial institutions in the country.<\/p>\n
–<\/p>\n
By:Lawrence Segbefia \/citifmonline.com \/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"
President John Dramani Mahama\u00a0has stated that his government’s\u00a0decision to introduce the Energy Sector Levy Law which culminated in\u00a0an astronomical increases in taxes and subsequently affected\u00a0prices of petroleum products, was a tough decision but very critical. Addressing Parliament in a\u00a0State of the Nation address on Thursday, President Mahama defended the passage of the controversial law; saying […]<\/p>\n","protected":false},"author":14,"featured_media":181215,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,10],"tags":[],"yoast_head":"\n