CSOs Propose GHC1.65 Deduction in Taxes, Margins, Levies on Petroleum Products
Four Civil Society Organisations have demanded GHC1.65 deduction in taxes, margins and levies on petroleum products as part of temporary relief for Ghanaians for two months.
In a joint statement, IMANI Africa, COPEC Ghana, INSTEPR and IES stated that the relief should be substantial given the level of tolerated waste across the downstream petroleum ecosystem.
Instead of the announced one-month relief, they demanded two months.
“We propose a cumulative reduction of GHC1.65 from the current petroleum price build-up, which should last for a period of TWO months instead of the FOUR weeks proposed by the government. We can then review the interventions again as they relate to the global world order.”
They also recommended that the ministries of finance and energy consider a much more comprehensive solution to the country’s perennial fuel price escalations.
Among its recommendations were:
1. A more comprehensive rationalisation of all existing taxes, levies and margins to permanently remove all that are a drag on individual and national resources.
2. Create a Strategic Reserve Fund by revisiting some of the levies proposed for review above (whose revenues could be utilised at all times in the purchase and storage of real-time fuel that can be used to positively intervene in the domestic market when the unforeseen happens.
3. Modernisation and retooling of the country’s refinery space by committing to make adequate investments in the country’s major oil refinery (TOR) such that, TOR together with the other refineries will be in a much better position to refine the country’s crude liftings. This was a promise made by the President at his last engagement with the CSOs.
Last week, the Cabinet ordered Finance Minister Cassiel Ato Forson to remove some taxes and margins on fuel to lower pump prices to mitigate the impact of rising fuel prices.
The removal will reflect in the next pricing window, which is in approximately one week.
The Cabinet also instructed the Minister for Transport to fast-track the deployment of 100 newly acquired buses for the Metro Mass Bus Company along high-traffic corridors.
These buses are mandated to charge lower fares than private operators to provide more affordable transport options for Ghanaians.
President John Dramani Mahama also reaffirmed the ban on fuel allowances for all ministers and senior government officials.
Story by Hajara Fuseini
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