Finance Minister Dr Cassiel Ato Forson has sparked controversy in Parliament with the introduction of the Vitality Sector Levy Modification Invoice beneath a certificates of urgency to impose new taxes on petroleum merchandise.
The invoice, submitted beneath a certificates of urgency, if authorised, will impose contemporary taxes on all petroleum merchandise, which Finance Minister Cassiel Ato Forson says is important to clear an alarming US$3.1 billion power debt as of the tip of March 2025.
Crucially, Dr Ato Forson assured Parliament right this moment, June 3, that, regardless of the increment, shoppers wouldn’t instantly really feel the impression on the pumps, attributing this cushioning to the strong efficiency of the Ghana Cedi.
The Minister detailed the dire monetary state of the power sector, revealing that the US$3.1 billion debt consists of vital arrears owed to Unbiased Energy Producers (IPPs), numerous State-Owned Enterprises (SOEs), and essential gasoline suppliers.
A serious contributor to this disaster, he famous, was the non-payment of payments to key energy suppliers like ENI and Karpowership.
This led to the entire drawdown of a US$512 million World Financial institution IDA assure and a US$120 million GNPC assure in 2024, leaving the federal government in pressing want of a further US$632 million to revive these very important ensures.
“To assist elevate further income to fund the wants within the energy sector, the federal government is proposing a rise within the ex-pump worth of petrol, diesel and associated merchandise,” Dr. Forson acknowledged earlier than Parliament.
Nonetheless, the Finance Minister moved swiftly to allay fears of fast price escalation for shoppers.
“Mr. Speaker, I repeat,” he emphasised, “the impression shall be absorbed by the features comprised of the sturdy efficiency of the Ghana Cedi and this can imply that customers won’t must pay additional for the value of petrol and diesel starting right this moment.”
He additional added, “Our simulations recommend that there shall be no improve within the ex-pump worth of petrol and diesel within the subsequent window starting right this moment if the levy is imposed. That is due to a robust Ghana Cedi.”
Dr. Forson clarified that the brand new levy is designed as a devoted supply of funding for the beleaguered energy sector.
Proceeds from the levy shall be particularly earmarked for the procurement of important gasoline needed for constant energy technology.
This, he defined, is key to making sure Ghana enjoys a secure electrical energy provide, on condition that “the present electrical energy tariffs paid by shoppers don’t embrace the price of gasoline used for the ability technology.”
The choice to implement this levy on petroleum costs, based on the Minister, represents a strategic steadiness between guaranteeing an uninterrupted and dependable energy provide for the nation and selling the long-term monetary sustainability of Ghana’s power sector.
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