Head of Banking and Finance Department, Dr. Godfred Bokpin described the circumstances surrounding the passage of the Emergency Energy Sector Tarrifs which has led to an increase in fuel prices as extremely fishy.
Lecturers from the Banking and Finance department of the University of Ghana Business school have expressed their suspicions and reservations over the government's New Tax Law.
Head of Banking and Finance Department, Dr. Godfred Bokpin described the circumstances surrounding the passage of the Emergency Energy Sector Levy which has led to an increase in fuel prices as extremely fishy.
Documentary evidence from parliament has revealed that the house approved a 5 percent increase in prices of fuel at the pumps after imposing the levies. However, Oil Marketing Companies are charging as high as 27 percent.
When asked about what he makes of what is being suspected to be a rip off by OMCs, Dr. Bokpin said,
"Honestly, government has not been truthful in the calculation of petroleum prices. It appears it only works when the prices skyrocket on the international market. But when prices fall then they find a way to impose all kinds of taxes."
To Dr. Bokpin it is unclear who is at fault, "whether it is the Ministry of Finance who misled parliament or it is the OMCs who are ripping us off."
Meanwhile, Finance lecturer Dr. Lord Mensah has described new taxes imposed on returns of foreign investments as ill-timed and counterproductive to the country's drive for Foreign Direct Investment.
" The 8 % taxes imposed on returns of foreign investors smucks of poor thinking on the part of government" he says.
" Government is at liberty to tax, but its a bit shallow to tax every and all income. Imposing taxes must not be across all sectors as government has done in this case."