The National Petroleum Authority (NPA) has explained that the imposition of the 17.5% tax on petroleum products will result in only a 3% increase in petroleum prices.
The Authority has rejected claims that Special Petroleum Tax will mean consumers will pay 17.5% more on petroleum prices.
The Finance Minister, Seth Terkper, on Wednesday submitted a bill to Parliament requesting the approval of a Special Petroleum Tax Policy which will see the introduction of 17.5% VAT on petroleum products.
Parliaments has approved the controversial 17.5% Special Petroleum Tax bill.
The approval was given by only the Majority Members of Parliament (MPs) after the Minority MPs staged a walkout during a debate on the bill.
Mr. Terkper�s announcement has angered Ghanaians and the Minority in Parliament who say petroleum prices must be reviewed downward since crude oil prices on the world market has hit a record low.
In an interview on Eyewitness News, the Chief Executive Officer of the NPA, Moses Asaga explained that government is keen on increasing revenue; hence, the introduction of the 17.5% VAT.
�Government is looking for revenue�and the Minister of Finance was very, very passionate about raising revenue through petroleum taxes,� adding that, his outfit �will still stick to the Automatic Adjustment Formula after they have applied the Special Tax on petroleum products.�
He stressed that when Parliament approves the 17.5% VAT, � it does not mean that today or tomorrow, if you go to the pump, you are going to pay 17.5% on top of what you are paying today because we are managing it very effectively.�
�This exaggerated 17.5% is not going to exist; it�s not going to be anything near 17.5% increment,� he stressed.
Mr. Asaga mentioned that the price of Liquefied Petroleum Gas (LPG) will be reduced by 10% while the price for Residual Fuel Oil used for industries and Premix Fuel for fishermen will see no upward adjustment �so it isn�t like the 17.5% is across board but there are exemptions for it.�
The NPA boss allayed the fears of Ghanaians that the 17.5% will translate into an upward adjustment of transport fares.
He gave the assurance that there is an existing agreement between the GPRTU, NPA and the Ministry of Transport therefore; citizens can be rest assured that transport fares will remain same.
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