Accra: The New Patriotic Party Minority Caucus in Parliament has urged the government to abandon the proposed fuel levy and seek more sustainable revenue-generating methods to address Ghana's energy sector debt. This appeal comes after the government's decision to delay the implementation of the GHS1 per liter fuel levy, which was initially set to commence on June 16.
According to Ghana News Agency, the call was made during a media briefing at Parliament House, where Mr. Kojo Oppong Nkrumah, the Ranking Member on Parliament's Economy Committee, highlighted that taxing petroleum products is not a sustainable revenue strategy. He emphasized the Minority's stance that the government should not only suspend but completely scrap the levy.
Mr. Oppong Nkrumah, who is also the New Patriotic Party Member of Parliament for Ofoase-Ayirebi, pointed out that the suspension of the levy indicates a miscalculation on the government's part. He noted that the Minority had previously warned that the levy would lead to higher pump prices and criticized the assumption that international fuel prices would remain stable.
He further called on the government to use this suspension period to conduct a comprehensive review of the efficiency and fairness of Ghana's revenue mobilization system. The MP stressed that despite the suspension, Ghana's budget continues to suffer from significant shortfalls due to revenue gaps caused by tax cuts that were not paired with reduced spending.
Mr. Oppong Nkrumah underscored the existing revenue challenges, noting that the GHS5.7 billion levy was intended to fill a budget gap of approximately GHS6 billion, a problem that persists. The Minority remains firm in its stance that the government should explore fairer and more sustainable revenue generation methods that do not place an undue burden on citizens at the fuel pump.
