GRi in Parliament 31 – 01 - 2003

 

 

Minority condemn increase on Road Fund Levy

 

Accra (Greater Accra) 31 January 2003- The Minority on Thursday said the increase in the Road Fund levy component of the petroleum prices was unconstitutional and an illegality.

 

The asserted that the price build-up of the recently announced price hikes indicated that the fuel levy has gone up from 230 cedis per litre to 400 cedis, an increase of 170 cedis per litre that was without parliamentary authorization or approval.

 

Doe Adjaho, Minority Chief Whip said this when he made an Urgent Statement in Parliament on the Road Fund Levy component of the recent petroleum price increases announced by the Government.

 

He said Article 174 (1) of the 1992 Constitution provides that "no taxation shall be imposed otherwise than by or under authority of Act of Parliament". "Parliament has authorised the government to impose a road fund levy on petroleum products under Act 544 as amended by Act 577 at 230 cedis per litre. Therefore, the additional levy of 170 cedis was unconstitutional and illegal", he added.

 

Adjaho said the government itself recognised this and therefore indicated that the additional 170 cedis was to be put into an Escrow Account (suspense account) but the law is clear, nobody can make constitutional what is unconstitutional and therefore the Escrow Account has no legal basis.

 

He therefore, called on the house to condemn the illegal act of the government and reduce the price of petrol and all affected petroleum products affected by the levy of 170 cedis per litre.

 

"This position is in line with the Constitution and law, unless a new Bill is introduced into the House to amend the existing law' he added. Adjaho urged the government to publicly declare what has been realised so far from the additional illegal levy and use it to defray the "uncertain" Tema Oil Refinery (TOR) debt.

 

The statement drew many interruptions from the majority side who said the levy of 170 cedis was not part of the Road Fund Levy and should not be confused with it. Osei Kyei Mensah-Bonsu, Majority Chief Whip said since the member cannot justify whether the figures indicated were for a tax or levy on the Road Fund showed that the statement was frivolous and out of merit and should not be maintained.

 

Steve Akorli, NDC-Ho East said the illegality of the Escrow Account was not in doubt at all adding that over the years there has never been anything as such and it was obvious that it was secretly put in place without parliamentary approval.

 

He said it was surprising that the government continues to deal in illegalities without regard to parliament's role in fixing of taxes and that this time round parliament would not accept any such levies.

 

Alhaji Mohammed Mumuni, NDC-Kumbungu said the statement raised very fundamental issues since it was obvious that the government took an illegal act by establishing the Escrow Account without reference to Parliament.

 

He said it would be wrong for the government to think of regularising the illegality retrospectively with any new bill or motion before later consulting parliament. Alhaji Malik Al-hassan Yakubu, NPP-Yendi in his contribution said the statement has not been helpful to the House since it was based on conjecture and so it should not be entertained.

 

Alban Bagbin, Minority Leader said the admission by three Ministers of State at various forums that there was an increase of 170 cedis to support road development and other projects was an illegality and must be condemned.

 

Papa Owusu-Ankomah, Majority Leader said the points raised in the statement was a directive to Government to endeavour to comply with the constitution and assured the House that Government would ensure that it confirms with the spirit of the constitution.

 

He called on members as colleagues to ensure that they collaborate with the government for national development and they should not always begrudge the government in media before debating issues in parliament. Earlier the Speaker, Mr Peter Ala Adjetey announced the death of John Setuni Achuliwor, NPP Member of Parliament for Navrongo Central and a minute's silence was observed by the House before proceeding started.

GRi.../

 

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