Gov’t reportedly agrees to scrap some taxes on petroleum products

The government has reportedly agreed to scrap some taxes on petroleum products as a way of dealing with incessant increases in fuel prices largely caused by rising crude prices on the International market and a depreciating cedi against major currencies.

The supposed government decision comes on the back of engagements with key groups and associations which threatened to embark on a demonstration over the hikes in fuel prices.

Key among the groups engaged are the Concerned Drivers Association and the Chamber of Petroleum Consumers of Ghana (COPEC).

The taxes tabled to be removed include the Bost margin levy, Sanitation, and petroleum levy, Price Stabilization Levy, Special Petroleum tax, and the Energy Debt Recovery Levy.

The Public Relations Officer of the Concerned Drivers Association of Ghana, David Agboado, in an interview with Citi News after the meeting said the levies are to be removed by the close of today, Tuesday, March 22, 2022.

“The outcome is very simple. The government has agreed to scrap the taxes, and has assured that by close of Tuesday, we will hear the good news.”

“Well, if by the time given, government doesn’t do as it has said, we will go ahead with our demonstration.”

Fuel prices in Ghana have increased significantly in recent times.

Last week, major Oil Marketing Companies were selling Petrol at an average of GH¢9.70 and diesel at between GH¢9.99 and GH¢11.

Industry watchers and the Minority in parliament have called on the government to roll out measures to cushion Ghanaians due to the knock-on effect of fuel prices on every other sector, but the government is yet to make any concrete announcement on the subject.

There have been suggestions that the removal of the tax component which comes up to about GHS2.00 on a liter of petrol or diesel, may not make much difference or solve the problem if global crude prices keep going up.

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