Politics of Wednesday, 4 June 2025
Source: www.ghanawebbers.com
Dr. Razak Kojo Opoku, Founding President of the UP Tradition Institute, criticized the Mahama administration. He accused it of policy inconsistency and misleading the public about a new GHS 1 tax on fuel.
In a statement released Wednesday, Dr. Opoku argued that this fuel levy contradicts the 2025 Budget Statement. This budget was presented by Finance Minister Dr. Cassiel Ato Forson.
He pointed out that while the budget mentioned reviewing the Energy Sector Levies Act, it did not mention a GHS 1 tax per litre of fuel. This is now being pushed by the government.
“The introduction of this fuel levy is inconsistent with promises made in the 2025 Budget,” Dr. Opoku stated. He noted it was not disclosed in sections covering energy sector interventions or fiscal reforms.
Dr. Opoku quoted Section 27 of the budget. He referenced Dr. Forson’s admission that traders and businesses worry about price instability due to fuel costs and exchange rate volatility.
He questioned how these groups would respond positively now that transportation costs will rise sharply under the new levy.
Dr. Opoku highlighted significant arrears in the energy sector flagged in the budget. These include $1.73 billion owed to Independent Power Producers and GHS 68 billion debt by Electricity Company of Ghana.
He also mentioned a GHS 35 billion financing shortfall cited in Sections 56 and 80-84 of the budget. However, he stressed there was no mention of any tax on fuel as part of recovery strategies in Section 136.
Instead, Section 152 stated that existing energy-related levies would be consolidated without increasing burdens on citizens.
“It is deceptive for the government to abolish taxes like VAT on motor insurance,” Dr. Opoku argued, “only to introduce a more regressive tax on fuel three months later.”
He questioned the fairness behind implementing this new levy while PURC prepares for major tariff adjustments in late 2025 due to increased costs.
“Are Ghanaians now to suffer double—through higher electricity tariffs and increased fuel taxes?” he asked.
Dr. Opoku concluded that the GHS 1 fuel tax is “a betrayal” of public trust. He claimed it exposes Mahama's budget as filled with significant lies.
He warned that this tax will reduce disposable income, increase living costs, discourage business growth, and weaken tax compliance.