Government has put on hold the implementation of the fuel levy
The Australia-New Zealand Chapter of the National Democratic Congress (NDC) has commended President John Dramani Mahama and the NDC government for indefinite suspension of the GH₵1 fuel levy in the wake of escalating geo-political tensions in the Middle East expected to spike international crude prices.
President John Mahama had earlier tasked both Ministers of Energy and Finance to monitor the evolving situation in the Middle East and model measures to shield Ghanaians from sudden oil price surges.
While the group praise the President for such a thoughtful directive, it encouraged government to assess the potential impact and take sound policy measures ahead of reintroduction of the levy when market factors become favourable in future.
The group proposed the gold and oil windfalls in the past months and forex exchange gains from sound economic measures bringing down average fuel price to GH₵11 from GH₵17 be invested in productive buffers for all Ghanaians and for the storm ahead.
The Chapter agreed that the levy in the interim would impose further charges on petroleum products for power sector stability while addressing the legacy debts at the time Ghanaians are reeling from economic challenges and excruciating cost-of-living pressures left by the erstwhile disastrous NPP government.
“While we welcome a gradual policy direction to address the energy sector challenges, we urge the government to prioritize regulations and operational efficiency in the power sector. For how long will the average Ghanaian endure the irritating trend of public officials stealing resources while the government overburdens the ordinary with endless taxes? In the main, we join the driver unions, bulk oil distributors, OMCs, and the Ghanaian public to invite the government to aggressively recover stolen resources to defray the energy sector debts. While at it, all political office holders, chief executives, chief directors, and all Article 71 office holders must forfeit their fuel and other frivolous perks such as clothing and entertainment allowances given the President has directed discontinuation of DSTV and all satellite subscriptions in public institutions,” the group said in a release.
“While we appreciate constructive voices on all matters of public concern, we dismiss the hypocritical minority in Parliament and the NPP’s stance on the ongoing matters no matter how justifiable. The Akufo Addo led NPP went against every moral voice to introduce their offensive e-levy with their officials consequently making mockery of the Ghanaian people with a decorated e-levy cake. The NPP are the same people whose appointees fleeced the country of its resources and are now seeking to prevent state institutions from bringing their suspected criminals to the law. How do the NPP expect the needs of our hardworking nurses, teachers and ordinary Ghanaians to be contained when they have looted the country through unashamed orchestrated schemes?” It quizzed.
In the energy sector alone, Ghana has recorded GH₵24 million BOST contaminated fuel scandal; 1.7 billion cedis AMERI scandal; the PDS scandal and many more during the NPP’s regime.
“Have we not seen evidence of ECG cables being smelted into aluminium rods in foreign firms in Ghana given some ECG containers could not be accounted for at the ports? Do we need to remind Ghanaians of the National Service Authority scandal which stands over GH₵548 million? How about the GH₵60.8 billion Bank of Ghana loses in 2022?” The group asked.
How about the National Cathedral, SML Agyapa Royalties, Yaw Osafo-Maafo Kroll & Associates, and many high-profile scandals?
“Would the new government contemplate taxing petroleum products if such millions of cedis were available to Ghanaians? Are the NPP not currently enjoying a truly rescued – RESET economy of a B- with a promising stable outlook from JUNK status under their so-called ‘What a Solid Team’? The NPP should give Ghanaians a break!” It lamented.
It further said the average Ghanaian can differentiate a government that identifies with their problems and are making genuine and modest efforts in sharing the gains and losses from a deceptive and inhumane government witnessed in the 8 years prior.
The group urged government to continue its candid posture of carrying the Ghanaian people along and openly discuss the problems confronting the nation while drawing clear objectives for the energy sector levy i.e., to purchase fuel for power generation and to raise revenue in tackling debt in the sector.
Government has projected that the country needs 1.2 billion dollars to purchase fuel to power all its plants to avoid interruptions in the foreseeable future.
The group called on all Ghanaians to understand the inherited challenges and keep their goodwill for President John Mahama and the NDC government to address the challenges for the collective good.
“The average Ghanaian could not begin to enjoy the benefits of a new and efficient government, and all soon be hit with another tax burden. While we congratulate the President for such a profound discretion, we invite the government to leverage on the constitutional review for a comprehensive stakeholder consultation in reviewing the country’s tax handles and prospective reintroduction of the levy with a subset clause communicated to all Ghanaians,” it stated