Bussiness
Scrapping of PSRL stalls as fuel prices rise to GH¢6.80 per litre
The much-anticipated removal of the Price Stabilisation and Recovering levy of 16 pesewas in the price build-up of fuel at the pumps is yet to take effect even as the second pricing window commences.
This is because Parliament is yet to give the National Petroleum Authority (NPA) the approval needed to scrap the levy.
While many were expecting the scrapping of the levy to take effect in the second window of October which started on October 16, another round of increases at the pumps this past weekend has pushed a litre of petrol and diesel to GH¢6.80 at some pumps.
The NPA on October 11, 2021, disclosed that President Akufo-Addo had approved the removal of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months.
The authority added that the approval followed its advice to the Energy Minister for the government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.
Speaking to Citi Business News on the matter, Head of Communication of the NPA, Mohammed Abdul-Kudus noted that Parliament “has not given the NPA the all-clear to remove the levy hence the increases we are seeing at some filling stations.”
“It would have to take Parliament to give us the clearance to now remove it from the price build-up. Because Parliament has not been able to give us the all-clear, and since the second window is supposed to ensue from October 16, regrettably the recent increases at the pumps by some of the OMC’s are inclusive of the levy. The levy will only be excluded after Parliament has given us the all-clear,” he said.
Brent Crude Oil, a key determinant in the price of fuel, ended September selling at around 77 dollars a barrel, settled at a three-year high above $85 a barrel on Friday, October 15, 2021.
According to a recent press release from the Association of Oil Marketing Companies (AOMC), the significant rise in the price of crude oil among other factors in the first window of October would lead to a litre of petrol and diesel selling at between GH¢ 6.88 to GH¢ 7.11 and GH¢ 6.82 to GH¢ 7.05 respectively in the second window, inclusive of the current Price Stabilisation and Recovery Levy.
Without the levy, the AOMC expects a litre of petrol and diesel to sell at between GH¢6.72 to GH¢6.95 and GH¢6.68 to GH¢6.91 respectively in the second window. Checks by Citi Business News at the pumps show that some of the Oil Marketing Companies like Total have increased a litre of petrol and diesel from GH¢ 6.52 to GH¢ 6.80.
Bussiness
Ghana’s GDP shows economy is fast recovering despite DDEP – Finance Ministry
Ghana’s Gross Domestic Product (GDP) indicates a rapid economic recovery despite global challenges and ongoing debt restructuring, according to the Ministry of Finance (MoF).
The Ministry in a statement today indicated that latest data from the Ghana Statistical Service (GSS), cumulative economic growth for the second quarter (Q2) of 2024 reached 6.9%, a notable increase from the 4.7% recorded in the first quarter of 2024.
The MoF statement further noted that, “The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).”
According to them, the overall real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.
By Edem Mensah-Tsotorme
Read full statement below
Bussiness
Facebook, Youtube, online trading companies must be taxed – Deputy Finance Minister
The Deputy Finance Minister Dr Alex Ampaabeng, has proposed that online trading companies should be taxed to bolster the economy.
He noted that these companies, both local and international, generate significant revenue from their Ghanaian clients, which underscores the necessity for taxation.
In an interview with Bernard Avle on Channel One TV’s The Point of View, Dr Ampaabeng pointed out various potential revenue sources for Ghana, including online businesses and content creation companies.
He questioned why other national companies operating in Ghana are taxed, but social media platforms like Youtube and Facebook, which run numerous advertisements, are not included in the Ghanaian tax system.
According to him, these social media companies earn profits from the advertisements they display, and online trading companies also generate income from the sale of their products and services.
He mentioned online trading companies such as Jiji, Jumia, and Tonaton, which he believes surpass all physical marketplaces in Ghana in size.
According to him, “I can’t think of a country which has not gotten a digital service tax system of some sort, so Ghana is long overdue. Just to make an example so that people will appreciate where I’m coming from. Go to Youtube and play a video, within one or two minutes, you are going to watch about two, or three adverts.”
“What it tells you is that Facebook or Youtube is making profits right here in Ghana. Go to your Facebook account, and you are going to see a number of adverts on your right, left. What it is telling you is that Facebook is making profits right here in Ghana and not being taxed. Meanwhile, there are companies operating in Ghana, for jurisdiction reasons, of course, that are being taxed,” he said.
The Deputy Minister added that “So then, it comes to the question of the application of our tax laws. Revenues generated in Ghana are subject to taxes. We have Facebook, TikTok and all those players, these are digital platform owners.”
He stressed, “Then we have the digital or market players, here we are talking about individuals who are using the digital platforms. We have Jiji, Jumia, Tonaton, these combined, are bigger than all physical marketplaces in Ghana. And it tells you the volume of transactions, that are going on there.”
He expressed his hope that individuals earning online profits from Ghanaian residents would be taxed.
“There are conversations ongoing, I wouldn’t want to pre-empt anything, maybe in the future, it might not be anytime soon, what I would like to see, is a Ghana where people who are earning all forms of profits in the country are subject to taxes. People who are trading online to Ghanaian residents, people who are generating revenue from Ghana are allowed to pay taxes,” he noted.
Additionally, he proposed a collaboration with the government to curb cybercrime by registering and verifying these online trading companies.
“We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified,”he concluded.
Source: Citinewsroom.com
