Gov’t risks ‘shooting itself in the foot’ with fuel tax – COPEC

Duncan Amoah, the Executive Secretary of COPEC, has issued a warning. He cautioned the government against new levies on petroleum products. He believes this could harm current economic stabilization efforts.

Amoah spoke on Citi Eyewitness News on June 3. He responded to the Energy Sector Levy Amendment Bill introduced by the Finance Minister. He described the proposed GH¢1 increase in fuel levies as counterproductive.

He stated that introducing new taxes now would add unnecessary pressure. This is especially true since deeper issues in the energy sector remain unresolved.

Amoah emphasized that fixing the power sector should be a priority. "You cannot continue to pour water in a leaking bucket," he said. We need to address the problems crippling the power sector first.

He stressed that resolving inefficiencies in energy is crucial before raising funds from consumers. "The earlier we stop the bleeding, the better," he warned. The government needs to think carefully about this issue.

Meanwhile, Finance Minister Dr. Cassiel Ato Forson laid out details of the bill in Parliament. He noted that $3.7 billion is needed to clear energy sector debts of GHS3.1 billion. An additional $1.2 billion is required for fuel procurement through 2025.

Dr. Forson assured Parliament that recent gains by the local currency would help mitigate levy impacts.