COPEC: Fuel tax cuts long overdue

The Chamber of Petroleum Consumers (COPEC) has welcomed the government’s decision to scrap some taxes on petroleum products, describing the move as timely and necessary to cushion consumers against the persistent rise in fuel prices.

The directive, issued by President John Dramani Mahama on Thursday, April 9, tasks the Finance and Energy Ministers to begin discussions on the possible removal of selected taxes within the petroleum pricing structure.

The decision comes at a time when global crude oil prices are under upward pressure, largely driven by geopolitical tensions in the Middle East, particularly involving Iran, the United States, and Israel.

These developments have directly impacted domestic fuel prices in Ghana, with consumers and businesses increasingly feeling the strain of higher transportation and production costs.

Government’s intervention is therefore seen as part of broader efforts to stabilise the economy and ease the burden on households.

Reacting to the announcement in an interview with Citi News, Executive Secretary of COPEC, Duncan Amoah, expressed the Chamber’s readiness to engage with the relevant ministries to ensure that any policy decisions deliver meaningful relief to consumers.

“Effective immediately, we would begin whatever discussions with the two ministries concerned to give our perspectives, particularly on some of the taxes that we believe have not only become a nuisance but have clearly outlived even their sunset uses.

“I believe that these tax conversations should not only be because of the Iranian-American-Israeli conflict situation that has seen fuel prices inch up to the levels they are.

“But it is something that clearly ought to have been done long ago. But we are happy nonetheless that Mr. President has given these directives that the ministries concerned should discuss and see how best they can rationalise some of the taxes and take out some of the taxes also to give some ease to the Ghanaian consumer.”

Source: Citi Business News