By Naa Shormei Odonkor
Kumasi, July 18, GNA – A financial expert has recommended that the Government look into combining all taxes and charges related to fuel and set a maximum limit of GHc 1.50 at the pump.
The government currently collects a total of GHc 3.00 for each litre of fuel bought at the pumps, including GHc 0.49 pesewas per litre as an energy debt recovery charge, GHc 0.16 pesewas per litre on gasoline and GHc 0.4 pesewas per litre on diesel as a price stabilization and recovery fee, GHc 0.01 pesewas per litre for the energy fund, and GHc 0.48 pesewas per litre as a road fund levy.
Nevertheless, Mr. Benaiah Nii Addo, the Executive Director of Green Tax Youth Africa (GTYA), a group focused on tax advocacy, mentioned that combining all taxes and limiting them to Gh¢1.50 at fueling stations could offer some financial support to people, as part of the government's plan for renewal.
In an interview with the Ghana News Agency in Kumasi, Mr. Addo discussed promoting comprehensive economic tax policy reforms in Ghana by engaging in extensive consultations and involving various stakeholders, stating that fuel prices in the country are excessively high.
He noted that keeping the Public Lighting and National Electricity Scheme Levies at three and four per cent respectively, along with the suggested Gh¢1 charge on fuel, would result in fuel levies and taxes amounting to approximately 40 per cent of ex-pump fuel prices.
Higher fuel costs, resulting from high taxes and charges, are leading to increased expenses in transportation, goods, and service provision.
This has led to Ghana being ranked as the 12th most costly country in Africa," Mr. Addo said.
He mentioned that the individuals most impacted were those living in poverty and part of the low-income group, who found it difficult to manage the rising cost of living because of the present challenging economic conditions.
He noted that Ghana extracts oil and sells it on the global market, yet the local population does not gain from the oil riches, instead facing heavy duties and taxes.
To ensure that citizens gain from Ghana's oil riches, Mr. Addo stated that the government needs to implement practical measures to lower fuel costs to single digits, while also looking into other revenue generation areas.
Mr. Addo stated that limiting fuel-related fees and taxes to Gh¢1.50 would help ensure domestic fuel costs remain stable and reasonable.
This would significantly help avoid large increases that might unfairly impact families with limited financial resources across the nation.
Additionally, he utilized the government to implement an automatic pricing adjustment system in order to strengthen retail price regulations and reduce significant profit margins in transportation.
Mr. Addo once more called on the government to examine the possibility of retrieving state funds from politically connected individuals whose origins of wealth were dubious.
He stated that Ghana loses billions of dollars each year due to corporate tax avoidance, manipulation of transfer pricing, and other illegal financial outflows.
Furthermore, Mr Addo called on the government to enhance the regulatory and tax management systems in order to eliminate or reduce corruption and keep funds within the nation.
He observed that the money recovered could be channeled toward public development goals, alleviating the financial pressure on individuals and enhancing cost efficiency.
He requested the government and the Public Utilities Regulatory Commission to update the quarterly electricity increase system as it widened the disparity.
Additionally, he advocated for greater openness regarding beneficial ownership and the introduction of severe consequences for multinational tax evasion.
Mr. Addo called on the government to focus on discussions and involvement of interested parties when formulating economic policies in Ghana, ensuring that appropriate policies are established.
GNA
Edited by Kwabia Owusu-Mensah and Lydia Kukua Asamoah
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