Parliament on Thursday passed the Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Amendment Bill 2009, to reduce taxes on petroleum products and make them affordable to the public.
A report of the Committee on Finance read on the floor of the House by Mr James Avedzi, Chairman of the Committee stated that the Social Impact Mitigating Levy has been abolished.
It said the tax reduction measures contained in the bill would result in a revenue loss of about five million Ghana cedis per month.
"Thus for the remaining ten months of the year, it would cost a total of approximately 50 million Ghana cedis. This, the Finance Minister explained that the loss would be taken care of by cost cutting measures," the report added.
The proposed reduction of the specific excise duty imposed on petroleum products are as follows: Premium Petrol currently at 7.1800 Ghana Pesewas per litre is reduced to 2.7800 Ghana pesewas.
Gas Oil from 6.2000 is to go for 1.8000 Ghana Pesewas per litre, Residual Fuel Oil from 5.094 to 3.2094 Ghana Pesewas per litre and Kerosene from 4.5375 to 1.0375. Ghana Pesewas per litre.
Marine Gas Oil (Local) from 3.9945 to 0.2945 Ghana Pesewas per litre, Liquified Petroleum Gas from 7.2246 to 0.7246 Ghana Pesewas per litre and Unified Gasoline from 7.1820 to 2.7800 Ghana Pesewas per litre.
In the presentation of the 2009 budget, Finance Minister, Dr Kwabena Duffuor informed Parliament of government's decision to reduce petroleum taxes and petroleum related levies in a bid to reduce poverty in the country and this bill was introduced to give effect to that measure.