January 9, 2015 Uncategorized
ACCRA – The government of Ghana is expecting a significant boost in revenues this year from a new tax on petrol products.
Earlier this week this Ministry of Finance of Ghana announced that it expects the collection of tax revenues from the newly implemented petroleum tax to reach a level of approximately GHS 1.4 billion over the course of this year.
The new tax was announced, which approved in November 2014, is levied at a rate of 17.5 percent on all petroleum products, including petrol, diesel, liquefied petroleum gas (LPG), natural gas and kerosene.
The revenues gathered from the tax are intended to help the government to reduce its national deficit, despite the fact that Ghana is now considered a middle-income country, a rating which will result in reductions in overseas aid and concessionary loans.
It was noted that the new tax has not had a significant effect on the prices faced by everyday consumers, and has led to a marginal increase in the price of petrol of only 3 percent.
By: Pedro Kwezi