[ 2021-03-13 ]

Afenyo-Markin defends government’s decision to introduce new levies
The Deputy Majority Leader in Parliament, Mr.
Alexander Afenyo-Markin has defended
government’s decision to introduce new levies in
the 2021 budget.

Government is seeking to introduce four new levies
and increase other existing ones this year.

Some of the levies in question are COVID-19 health
levy, Petroleum levy, Sanitation and Pollution
levy as well as financial sector clean up levy.

While presenting the 2021 budget in Parliament on
Friday, March 12, 2021, Caretaker Minister for
Finance, Osei Kyei-Mensah-Bonsu explained that
Ghana has over the years faced difficulties with
the economy arising from high excess capacity
payments in the energy sector and other
non-recurrent expenditures.

“Despite the substantial progress made by the
Akufo-Addo Government, there is the need to find
additional resources to cover the excess capacity
charges that have resulted from the Power Purchase
Agreements (PPAs) signed by the previous
Government which required payments for capacity
charges even when the plants involved were idle or
unutilised.”

“Mr. Speaker, it has become very necessary for
Government to consider a review of the energy
sector levies. The Energy Sector Recovery Levy of
20 pesewas per litre on petrol/diesel under the
ESLA is hereby submitted to this House for
approval”.

The Minority has however kicked against the
decision.

They argued that the taxpayer is already burdened
by the effects of the COVID-19 pandemic and will
be worse off with the introduction of the new
taxes.

But the Effutu legislator in a Citi News interview
justified the need for the levies.

According to him, they are needed for the
efficient management of the economy.

“Look at the over GHS 21 billion that government
had to give out to those who lost their
investments and the social interventions the
government had to give out to Ghanaians due to the
COVID-19 pandemic and all these have to funded.”

Source - Citinewsroom

... go Back