BY YESMAN ANTOH-
NEW AFRICA BUSINESS NEWS, Accra, Ghana- THE LIQUEFIED Petroleum Gas (LPG) Marketing Companies Association has called on government as a matter of urgency removes all taxes on the Liquefied Petroleum Gas.
According to the association, the request is due to the decline of users as a result of high increase of taxes affecting the prices of their product.
Gabby Kumi, vice president of the association, told the media that, once government remove the taxes from LPG, prices will come down for users to buy and attract potential users who do not use LPG in their homes and businesses.
According to him, the association thinks government introduction of the Cylinder Recirculation Model (CRM), which is the implementation model for the national LPG policy to envisage at least 50% of Ghanaians to have access to safe, clean and environmentally –friendly LPG for domestic, commercial and industrial usage by 2030 is a great move.
However, they express fear because; the move no matter how wonderful it may sound will not be realized anytime soon.
“This is because in the existing saturated market of the product, the only way to increase use is by creating access for new users. Unfortunately, these same new consumers have no monetary incentive to abandon their cheaper options and jump on the LPG bandwagon because it does not make sense to do so,” they explained.
The association said they have advised the National Petroleum Authority about the taxes on the LPG in their meetings but nothing has been done about it and so believe that government is the only one that can remove the taxes hence their call on them.
They said “it is our contention that the removal of taxes will significantly bring down the cost of the LPG and make it possible for the ordinary Ghanaian to afford it. That is why we are calling upon government to act immediately in the interest of Ghanaian people it swore to protect and help progress.”
BY YESMAN ANTOH, NEW AFRICA BUSINESS NEWS, BUSINESS & POLITICS, GLOBAL CORRESPONDENT
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