Business in Ghana

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Posts Tagged ‘Budget 2012’

Expect Fuel Price Hike Soon

Posted by Business in Ghana on December 11, 2011

By Sydney Caasely-Hayford, Sydney@bizghana.com

A recent decision by an Accra High Court could have misunderstood the use of the Ex-refinery price differential In the calculation of fuel pump prices and this may force Government to raise retail pump prices if the National Petroleum Authority (NPA) loses its appeal and Government is mandated to carry out the court order.

Simply explained, the court ruled that the ex-refinery differential used in the calculation of the fuel prices is a form of tax and must therefore have Parliamentary approval before implementation.  The detail of the case is captured in a series of articles in most Ghana media.

If you delve a little deeper into the calculation of retail pump prices made available by the NPA and in the public domain, you notice that the ex-refinery differential is used to reduce the final pump price rather than increase it.  In effect, it is a subsidy not a tax. Read the rest of this entry »

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STATEMENT BY NATIONAL COALITION ON MINING ON 2012 BUDGET

Posted by Business in Ghana on November 21, 2011

PROCEED WITH FURTHER REFORMS IN THE MINING SECTOR

The National Coalition on Mining (NCOM) commends the Government of Ghana for the new fiscal initiatives introduced in the mining sector. This commendation is in line with the Coalitions view that these steps are part of a set of actions that are urgently needed to improve the contribution of the sector to the economy and people of Ghana. It is in this regard that the Coalition calls on the government to ignore complaints from mining companies about these initiatives. Rather, the government should proceed with immediate implementation of these new taxes and the critical review of the fiscal regime and mining agreements. The upward adjustment and an overhaul of the fiscal regime constitute a set of actions that ensure that the country improves upon its share of benefits from mining sector. Read the rest of this entry »

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