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The Liquefied Petroleum Gas Marketing Companies Association of Ghana has expressed disappointment in the government and the National Petroleum Authority (NPA) for introducing a new levy on LPG in the wake of the outbreak of the coronavirus in the country.
The Association says the levy will worsen the already burdened consumers of LPG in the country.
The NPA announced a GH¢13.5pesewa/kg Cylinder Recovery Levy with effect from April 1, 2020, when Ghana is on partial lockdown due to the outbreak of the coronavirus.
Reacting to the issue in a press statement signed by the Chairman of the Association, Malam Bukari Amadu, and copied to the 3news.com in Accra on Friday, April 3, the marketing companies said “the plight of the ordinary Ghanaian whose source of income is threatened due to the lockdown of most businesses will be worsened if this Levy is allowed to stay”.
“We have been at the forefront of efforts appealing to Government to remove all existing taxes and levies from LPG to make the product more affordable to the ordinary Ghanaian consumer. It will therefore be ironic and indeed highly unprincipled for us to support the introduction of a new levy,” the statement explained.
Malam Amadu admitted that “they know the NPA needs money to effectively roll out the CRM policy, but we are resolute in our conviction that our regulator must find more innovative means to raise the needed revenue. Unfortunately, adding more Levies to the already over-taxed LPG consumer is not the way to go in our humble opinion”.
“We have rather consistently suggested and insisted, that the 5 Ghana pesewas already being charged as LPG distribution compensation/promotion margin, on the Price Build Up, should be used to fund the acquisition of New Cylinders. This has been our principled position in all our deliberations with our regulator, the NPA. This assertion can be supported with minutes, captured by officials of NPA, in our meetings with our regulator,” the statement urged.
Malam Adamu assured that “our Association, which has been demanding the removal of taxes on the LPG, are ready to partner Government to keep money in the pocket of consumers by reducing the price at the pump to reflect the low crude oil price on the international market in this difficult times”.
“We shall continue to remain very civil and matured in our discourse, devoid of personal attacks, in our quest to find a lasting solution to this very important issue which will shape the future of the LPG industry in our country.”
The Association called on the NPA to withdraw the levy.
“We therefore call on our regulator, The NPA, to as a matter of urgency, withdraw the new Levy and further engage industry players on the best possible way forward”.
By Kweku Antwi-Otoo|3news.com|Ghana