Business

COPEC reiterates calls for review of taxes to check fuel price hikes

The Executive Director of the Chamber of Oil Petroleum Consumers (COPEC), Duncan Amoah has reiterated calls for the government to review the taxes imposed on petroleum products in the country.

According to him, taxes are a major driving factor behind the rising cost of fuel in the country.

Speaking on The Point of View on Citi TV, Mr. Amoah said the situation is not helping the personal economies of persons who directly consume petroleum products.

He said, although the exchange rate also plays a role in the development, there isn’t a strong argument to hold it responsible as the major cause.

“Taxes definitely are driving our prices upwards, The forex is not helping much. [The dollar was stronger many years ago] but, we didn’t get to GH¢ 6.5 per litre. The taxes are too strong in relation to the upward increase in prices,” he said.

“With the recent increment [in prices] we are talking about from GHS 6.38 to GHS 6.52… You can imagine what this alone does to your pocket anytime you go to the pump. On every gallon, Ghanaians could have saved GH¢2.07 pesewas,” he added.

Mr. Amoah said while it appears taxing petroleum products is the easiest way to raise government revenue, it is leading to hardship for Ghanaians.

He has therefore asked the government to reconsider some of the taxes.

Some of the taxes include the Energy Sector Recovery Levy of GHS 20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG).

In addition, there is a Sanitation and Pollution Levy of GHS10 pesewas per litre of petrol and diesel respectively and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064).

Citinewsroom

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *