Parliament Passes New Energy Sector Levy to Address Shortfall on Marine Gas Oil

Accra: Parliament on Thursday passed the Energy Sector Levies (Amendment) Bill 2.0 into law to increase the rate of the energy sector shortfall and debt repayment levy on marine gas oil. It is also intended to improve compliance and curb diversion of the product.According to Ghana News Agency, Dr. Cassiel Ato Forson, the Minister of Finance, explained the rationale of the legislation, stating that the government had observed significant leakages that undermined the fairness and integrity of the government's fuel subsidy programs, particularly those intended to support artisanal and commercial fishing activities. These leakages created avenues for individuals to profit illegally from government subsidies meant to reduce the cost of operations for genuine fisherfolk.This situation deprived the state of critical revenue needed for social and economic development and distorted the intended impact of those subsidies on the fishing sector. Dr. Forson emphasized that the government is taking decisive steps to re form tax compliance within the petroleum downstream sector to address these challenges, seal all loopholes, and ensure that the fishing community continues to receive government support without sacrificing national revenue to promote illicit trade.In this regard, Dr. Forson stated that the government would remove the price differential between marine gas oil and other diesel products. The minister highlighted that the government recognizes the importance of supporting the fishing industry; therefore, a more targeted measure would be implemented to provide the necessary support directly to the artisanal and commercial fisherfolk, ensuring that assistance reaches its intended beneficiaries without creating opportunities for abuse.