Ghana: COMAC Opposes Proposal To Introduce New Tax On Fuel To Fund Fire Service

The Chamber of Oil Marketing Companies (COMAC) in Ghana has rejected a proposal by the Interior Ministry to introduce a 10-pesewa tax on petroleum products.

The tax aims to support the Ghana National Fire Service (GNFS), but COMAC argues it is unsustainable and impractical.

COMAC acknowledges the critical role of the GNFS but says the petroleum sector is already burdened with multiple levies and taxes, contributing to high fuel prices.

These levies account for approximately 25% of the ex-pump price.

“While we acknowledge the need to improve the operational efficiency of the GNFS, we strongly advocate for a proactive approach rather than reactive taxation to address fire safety concerns,” a statement signed by Dr. Riverson Oppong, Chief Executive Officer and Industry Coordinator, said.

Dr. Oppong listed around 12 taxes and levies imposed on fuel including Energy Debt Recovery Levy, Road Fund Levy, Energy Fund Levy, Price Stabilization and Recovery Levy, Sanitation and Pollution Levy, Energy Sector Recovery Levy, Special Petroleum Tax, Primary Distribution Margin and BOST Margin.

According to him, these levies and regulatory margins collectively account for approximately 25% of the ex-pump price, adding a significant cost burden to Ghanaian consumers.

“While we acknowledge the need to improve the operational efficiency of the GNFS, we strongly advocate for a proactive approach rather than reactive taxation to address fire safety concerns.

“The Chamber of Oil Marketing Companies firmly opposes the introduction of any additional fuel levy and calls on the government to explore alternative financing strategies that do not impose further economic hardship,’’ Dr Oppong stated.

Source: https://energynewsafrica.com