• It will be a shame to see ESLA become a permanent task, Seth Terkper
• Introduction of fuel levies responsible for fuel price increment, Minority
A former Minister of Finance under the John Mahama administration, Seth Terkper, wants the government to ease the pressure being mounted on the citizens by removing energy sector levies.
He called for the removal of the Energy Sector Levy Act (ESLA) from the petroleum price build-up so as to stabilize prices of fuel at the pumps, stressing that the ESLA has outlived its purpose, reports asaaseradio.com.
“So minimum, ESLA is going to remain per my estimation. This may also account for why it has become difficult for ESLA to reduce pump prices. Because if you reduce the pump prices remember you have pledged to the markets that there will be sufficient revenue to meet the debts you have taken. But it will be a shame to see ESLA become a permanent task … given its characterization as a nuisance tax… if we did that the real nuisance is yet to come,” he said.
He made this known while speaking at a PFM-Tax Africa Network event ahead of the 2022 Budget Statement and Economic Policy.
The National Democratic Congress (NDC) had, in October, urged the government to immediately scrap all new and existing “nuisance” taxes on petroleum products to stabilize the prices of fuel.
“The introduction of a GHp20 energy sector levy on every litre of diesel and petrol, the increase of GHp18 in ESLA per kilogram of liquid petroleum gas, GHp10 pesewas sanitation tax on a litre of diesel and petrol, among others, as well as the free-fall of the local currency, were major factors responsible for the persistent and steep increase in the prices of fuel products,” they had said at a press conference.
