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The Member of Parliament for Ofoase-Ayirebi, Hon. Kojo Vincent Oppong Nkrumah, has strongly criticized the newly introduced Energy Sector Shortfall and Debt Repayment Levy, calling it one of the highest single-instance taxes ever implemented in Ghana.
Speaking at a press briefing, the former Information Minister revealed the unprecedented nature of the levy, which is set to charge Ghanaians GH¢1.00 per litre of petrol or diesel, translating to an effective rate of 8% per transaction. A transcaction he said makes it among the most burdensome levies imposed in recent history, he emphasized.
“Ghanaians will bear witness that this levy is being charged at a rate of eight percent per transaction and this makes it one of the highest tax rates introduced in Ghana in a single instance. If you study the history of VAT and many of our other revenue handles, you notice that at the first instance of introduction, sometimes it’s one percent, 1.5 percent or two percent, and then maybe as the years go by, you may find some add-ons and then a consolidation.
“For this particular levy, at the first instance, the government is charging the people of Ghana eight percent and this is one of the highest rates at first instance in terms of taxation that is being introduced in the republic.” He stated
The Ghana Revenue Authority (GRA) is expected to begin a series of stakeholder engagements this week with Oil Marketing Companies (OMCs) and other key industry players to clarify implementation procedures ahead of the levy’s enforcement, scheduled for the second pricing window in June 2025.
However, Oppong Nkrumah pointed to rising dissatisfaction and growing opposition among industry players and transport unions.
“Now, you are beginning to notice that, for example, the Chamber of Oil Distributors are openly calling it out that nobody was consulted and this was smuggled in and infringed on the people of Ghana and they’ve been pushing back and now government says it will wait for a few days before it still goes ahead to implement it.
“You are also noticing that the driver unions are shocked and are calling government out for what it has done and are threatening even demonstrations in some instances. Now, we want to take a moment to highlight some things about the levy that because the people of Ghana didn’t get an opportunity to have a full discussion on it, have come up and we think we need to draw your attention to.” He disclosed.
Hon. Kojo Oppong Nkrumah also questioned the rationale behind imposing such a levy, suggesting it amounts to citizens paying for government inefficiencies in the energy sector.
“Again, even if thislevy wasn’t hypocritical, as has been mentioned by my brother, and had an honest justification why would the government impose a levy with an eight percent transaction rate on the peopleof Ghana? Just simple wickedness. To think that this eight percent is on every gallon of fuel actually cascading down to every litre of fuel to pay for the inefficiencies in the energy sector is simply a stab in the back of many people who believe the government at their words that they will not impose levies to pay for the inefficiencies in the energy sector.
Source: Elvisanokyenews.net
