According to the Importers and Exporters Association of Ghana, the public should expect a rise in the price of goods and services in the coming days as a result of the government’s implementation of new taxes.
As part of the government’s efforts to revive the economy in the midst of the Covid-19 pandemic, it enacted new taxes such as a 1% COVID-19 health recovery levy and an energy sector recovery levy, among others.
According to Samson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association Ghana, consumers should brace themselves to pay more because “as a responsible association, we are very much aware that customers are people with whom we must build a good relationship.” As a result, it is critical that we inform consumers and potential buyers that starting in May, the price of GHS1 will skyrocket. This is not because the importer is having a good time, but because the government has come out and said that they need these funds to fight the Covid-19 pandemic, clean up financial institutions, and so on.”
The Ghana Revenue Authority previously stated that the new taxes would go into effect on May 1st of this year.
These new taxes result from the imposition of an Energy Sector Recovery Levy of GHS 20 pesewas per litre of petrol/diesel and 18 pesewas per kg of Liquefied Petroleum Gas (LPG), as well as a Sanitation and Pollution Levy of GHS 10 pesewas per litre of petrol and diesel.
The COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 are also in effect (Act 1064).
Some transportation associations, such as the Committed Drivers Association, have already stated that they will pass on the taxes to passengers by raising fares.