Public transport, otherwise known as ‘Trotro’, fares are to remain the same despite the increase in the price of premium fuel, Mona Quartey, Deputy Finance Minister has said.
“We have an agreement with the Ghana Private Transport Union (GPRTU) that if an increase in fuel price at the pump station is not up to 10 percent, there shouldn’t be an increase in fares,” Mrs. Quartey said
Finance Minister Seth Terkper, during the presentation of the 2015 budget to Parliament on Wednesday, presented the new petroleum bill to Parliament under a certificate of urgency in which there was a proposed 17.5% VAT increment on petroleum products.
The bill was subsequently passed into law by the Majority in the House after the Minority stormed out of the debate in disagreement with the increment.
Under the new arrangement, Premium has increased by 3%, Kerosene 2.8% and Gasoline 3%. The price of premix remains the same, while LPG has been reduced by 9.54%.
The International Monetary Fund (IMF) as part of on-going discussions on a programme with the government of Ghana is impressing on government to check fiscal excesses and raise revenue. The country’s Fiscal Deficit on cash basis, stood at GH¢6,768.30million, 5.9percent of Gross Domestic Product (GDO) as at the end of September 2014.
The 17.5 percent VAT on petroleum products is among new tax measures introduced in the 2015 Budget to enable government to increase revenue.
The five percent National Fiscal Stabilisation Levy and Special Import Levy of 1-2 percent has also been proposed for extension until 2017.
A 5 percent flat VAT rate on real-estate and increasing the withholding tax on Director’s remunerations from 10 percent to 20 percent, are both tax measure to ensure government maximises revenue generation.
Source: GhanaWeb
