The LPG Marketers Affiliation claims it is from the National Petroleum Authority’s (NPA’s) explanation for imposing a new Cylinder Recovery Margin on the LPG rate create-up.
In accordance to a release by the NPA, LPG Advertising Providers will suppose full responsibility of the basic safety and upkeep of cylinders, as nicely as getting liable for any mishaps involving their branded cylinders, when the cylinder recirculation module rolls out.
The Vice President of the LPG Marketers Affiliation Gaby Kumi told JoyBusiness, the issue is not against elevating revenue for NPA’s agenda but somewhat to make sure that the regulator does that with out adding on additional tax.
Mr Kumi reported, “At this important time when the President is out there attempting to defend the country, the only thing our regulator can do at this moment is to boost taxes on a standard commodity like LPG.
“We feel that is in negative taste. We are interesting to NPA to as issue of urgency withdraw the levy they’ve tried using to introduce, let us get again unto the drawing board. We can appear elsewhere and discover some money. ”
He has also renewed calls for the authorities to eliminate taxes on the LPG selling price build-up to achieve government’s quest of expanding penetration of the commodity in the region.
Mr Kumi said usage of the commodity has stagnated above the decades and cautioned the downstream regulator that LPG usage will start declining if the quite a few taxes are not taken out.“We have taken a extremely principled position. We have been hammering this for the earlier two yrs that LPG must be made tax-totally free.”
“We have been pleasing to the governing administration to take about 20% tax from the product or service. So that the item can be a lot more very affordable for the regular Ghanaian to use mainly because the authorities has established by itself an goal to raise usage from the present-day 25 for every cent to 50 for each cent by the yr 2030. But we believe that that the strongest enemy from the solution is the value.”
He stated the price tag of LPG in Ghana is a single of the highest in Africa. “So we see no cause why if we are not taken off the present taxes, why ought to we incorporate on to taxes at this important time”