Government to scrap about 5 taxes on petroleum products

Government to scrap about 5 taxes on petroleum products

As a means of alleviating the plight of Ghanaians in the era of skyrocketing fuel prices due to the rising cost of crude on the International Market and the cedi depreciation, reports indicate that the government has decided to scrap some taxes on petroleum products.

This decision was arrived at following the government’s engagement with some groups who had threatened to demonstrate over the increased fuel prices.

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

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

Meanwhile, the Public Relations Officer of the Concerned Drivers Association of Ghana, David Agboado, after the meeting revealed that the levies are to be removed by close of today, Tuesday, March 22, 2022.

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

“Well, if by the time given, the 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 between GH¢9.99 and GH¢11.

This led industry watchers and the Minority caucus in parliament to urge 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.

People have also indicated that the removal of the tax component which comes up to about GHS2.00 on a litre of petrol or diesel, may not make much difference or address the situation if global crude prices keep going up.

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