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17.5% VAT imposed on petroleum products

The Finance Minister, Seth Terkper has announced government’s intention to introduce a Special Petroleum Tax of 17.5%.

He has asked Parliament to approve the bill he presented to House right after presenting the 2015 budget statement on Wednesday.
Mr. Terkper indicated that the bill if approved will help government rake in more revenue from the oil and gas sector.

According to him, the 17.5% Special Petroleum Tax policy forms part of a rationalization of Value Added Tax (VAT) regime and change in the petroleum pricing structure

The Special Petroleum Tax is to be accompanied by a Mitigation Account which will manage extremely low and high prices “that result in sporadic price increases or decreases under the automatic adjustment formula.”

Ghana is currently negotiating with the International Monetary Fund (IMF) for a bailout and the Fund had hinted that the programme when agreed will target total elimination of petroleum subsidies.

The Finance Minister stated that the 2015 budget will be unique since it will usher the country into the gas era and Phase II oil-gas production.

The Speaker of Parliament, Edward Doe Adjaho has referred the bill to Parliament’s committee on Finance for consideration.

 

 

Source: Citifmonline.com/Ghana

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