Government to introduce Sanitation and Pollution Levy – Kyei-Mensah-Bonsu

March 12, 2021

Osei Kyei Mensah Bonsu reading the 2021 Budget Statement in Parliament on Friday, March 12.

The government has announced that it will introduce a Sanitation and Pollution Levy to help address the issues of sanitation in the country.

Reading the 2021 Budget Statement, the Caretaker Minister of Finance said that the Sanitation and Pollution Levy of 10 pesewas will be incorporated into the proposed fuel levy

This new rate will be charged on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA).

With this new tax, government, Osei Kyei-Mensah-Bonsu said, will embark on a number of projects including the re-engineering of landfill sites at Kpone and Oti, the construction of waste recycling and compost plants across the country and the construction of more sanitation facilities to accelerate the elimination of open defecation. 

Other projects are the construction of medical waste treatment facilities to prevent the generation of infectious diseases especially under the Coronavirus Treatment Programme, support fumigation of public spaces, schools, health centres and markets, improve urban air quality and combat air pollution and the construction of final treatment and disposal sites for solid and liquid waste.

“Mr Speaker, these are all very critical investments that have to be made for the benefit and dignity of all Ghanaians. These will ensure sustainable sanitation management, improve the quality of life and reduce the number of deaths and diseases from poor sanitation,” Mr Kyei Mensah said.

He stated that the tax will help provide the requisite resources to address the sanitation challenges and fund the activities government has planned to ensure the country is cleaned.

Aside from this, government is also introducing a Covid-19 Health Levy of 1% on VAT, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.

There will also be an increase in the energy sector recovery levy and road tolls.

Speaking to JoyNews, Buisila South MP, Dr Clement Apaak, condemned the introduction of new taxes by government in the 2021 Budget Statement.

He said because of the Covid-19 pandemic it is unfair for government to put additional strain on citizens when production is low and personal income has dwindled.

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