The Minority in Parliament has urged the government to permanently eliminate the proposed fuel levy and seek more sustainable methods for generating revenue to tackle Ghana’s energy sector debt.
This request comes after the government decided to delay the implementation of the GHS1 per litre fuel levy, which was originally set to start today, June 16, 2025.
In a media statement, the Ranking Member of Parliament’s Economy Committee and MP for Ofoase Ayirebi stressed that taxing petroleum products is not a viable long-term solution for revenue generation.
“As a Minority, we have called on the government to not just suspend but completely abolish the levy,” he stated. “This suspension highlights two key points: Firstly, we warned that the introduction of the levy would lead to higher pump prices. Secondly, the assumption that international fuel prices would stay stable was misguided.”
He elaborated that the government’s choice to suspend the levy indicates a recognition of their miscalculation. “While we await the complete removal of the levy, we are encouraging the government to take this opportunity to conduct a thorough review of the efficiency and fairness of our revenue collection system.”
The MP pointed out that Ghana’s budget continues to experience a significant shortfall due to revenue deficits caused by tax reductions that were not accompanied by corresponding cuts in spending.
“Our revenue issues have not disappeared. This GHS5.7 billion levy was intended to fill a budget gap of approximately GHS6 billion. That issue remains unresolved,” he cautioned.
The Minority maintains that the government needs to discover fairer and more sustainable methods of raising revenue without placing additional burdens on citizens at the fuel pump.
Source: HotFmOnline.com
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