The Dean of the Parliamentary Press Corps (PPC), Simon Agianab, has appealed to Ghanaians to embrace the 10pesewas levy on petroleum products since it will go a long way in helping to solve the Sanitation challenges confronting the country.
Just like the Energy Sector Levy (ESLA), which has now become the nation’s savior, Agianab urged citizens not to regard the Sanitation levy as a nuisance tax but one that has the potential of changing the face of Sanitation management in the country if embraced by all.
The levy he noted will provide a dedicated and reliable funding source to support the private sector which hitherto depended on loans for sanitation issues in the country.
Agianab stated this when Members of the (PPC) toured some waste management facilities in Accra under the Jospong Group of Companies.
The tour forms part of the learning process for members of the Corps to get firsthand information on challenges of waste management in the country and the mounting cost to the sector, among others.
Government in the 2021 budget statement proposed the imposition of a ten pesewas Sanitation and Pollution Levy (SPL) on fuel prices.
This has generated lots of criticism with some people even describing the levy as a nuisance tax, among others.
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However, sector players such as Environmental Services Providers Association (ESPA), Sewerage Systems Ghana Ltd (SSGL) and Coalition of NGOs in Water and Sanitation (CONIWAS), have all welcomed the tax initiative as a life saver for the sanitation sector if indeed it is implemented and sustained.
According to ESPA, the levy could provide a dedicated fund for waste management which is currently nonexistent and therefore the sector relies solely on loan and government subvention to fund its activities.
They argued that a dedicated fund for the sector will mean service providers would be paid on time and in full to enable them to take care of their operational costs timeously.
THE SANITATION LEVY
The proposed sanitation levy if implemented will change the face of sanitation in Ghana. Many industry players have described it as a game changer as it does not only affect the sanitation sector but also touches other sectors such as health, finance, tourism and employment. A major problem of the central government regarding sanitation is the source of funding for sanitation projects. The levy is therefore expected to offer the government an innovative way to finance its projects in the sanitation industry.
Among others the sanitation levy will guarantee
- Improved public health
- Help reduce OPD cases which are mostly sanitation related (malaria, typhoid, cholera among other)
- Free finances for the ministry of health to undertake infrastructure projects such as the retooling of existing health facilities and building of more regional, municipal and district health facilities.
- Help in the expansion of medical training facilities (medical schools, nursing training and technical universities to train more medical partitions and enhance their skills)
- Improved sanitation infrastructure
- Help the sector to undertake infrastructure projects (construction of treatment plant and final disposal sites)
- Improve the haulage and transportation of waste (injection of more waste management equipment and the construction of transfer stations)
- Reduce the unemployment deficit (engaging the youth in programs such as beach cleaning, public education and sanitation law enforcement)
- Improved policy and laws
- It will help the Ministry of Sanitation to undertake a broader consultation to influence policy formulation (sanitation forums, stakeholder engagement and meetings with private waste contractors)
- Help enroll waste management staff of all MMDAs into the Institute of Sanitation and Waste Management (for skills improvement and continues training)
- Equip the various MMDAs to enforce sanitation laws. (Through the establishment of more sanitation courts).
Importance of the tax sector by sector
- Improve the sanitation sector (by ensuring all communities are clean at all times)
- Improve the health sector (reducing OPD cases to help the NHIL save and engage in other health related projects)
- Improve the tourism sector (ensuring our tourist site such as beaches are clean)
- Improve the employment (engage the youth in sanitation programs to reduce the unemployment deficit).