The Liquefied Petroleum Gas (LPG) Marketing Association of Ghana is calling on the government to scrap all the taxes levied on the commodity.
The Vice President of the association, Gabriel Kumi, in an interview with Kojo Yankson on the Pulse on Tuesday, indicated that if the government wants to achieve its objective of increasing LPG consumption from 25% to 50% by 2030 then it has to consider their request.
“Government has no other option than to take away all the taxes and levies from the product to make it more accessible and more affordable so that the ordinary Ghanaian can use it,” he stated.
He further said, “If the government is serious at saving our environment and eventually saving mother Ghana the best option at this stage is to remove all the taxes.”
Mr Kumi stated that the introduction of taxes on LPG in 2015 has resulted in the high cost of the product, therefore, people substitute it with charcoal and firewood which affects the environment.
“It is about alternatives, ones people have a cheaper alternative they will, by all means, go for the cheaper one. So if we are able to remove all these taxes and levies from it, it makes it cheaper than charcoal and people will come back to LPG,” he stated.
In August 2019, the Association issued a press statement asking the government to scrape off 23% tax levied on the fuel product.
The association wanted the Finance Minister, Ken Ofori Atta, to take advantage of the mid-year budget review to bring relief to Ghanaians.
The Vice President of the association also stated that a small reduction on the taxes on LPG can save the environment.
“If we are to say the LPG marketing companies in Ghana want to make more money and at the end of the day we save the environment, what is wrong with it?” he quizzed.
He again called on the Finance Minister to consider their request in the upcoming budget reading.
“Our finance minister is very good at removing nuisance taxes and we believe one major nuisance that has escaped his attention over the years is LPG products,” he said.
Ken Ofori-Atta is to present the 2020 budget and financial policy of the government to Parliament on Wednesday, November 13, 2019.
The Finance Minister has disclosed that the 2020 budget statement will focus on sustaining gains made over the past three years.
This budget will be the fourth under the current administration.