Government cannot reduce taxes on fuel – Boamah

Fuel prices cross GH¢8 mark

Oil hits 10-year record high, selling at US$120 a barrel

Public calls for reduction in fuel taxes

Vice chairman of Parliament’s Finance Committee and MP for Okaikwei, Patrick Boamah has said any reduction in taxes on fuel at this time will have huge consequences on the economy making it impossible for government to do so at this time.

Speaking to Asaase Radio’s Gemma Appiah, Boamah said any move to reduce the taxes on fuel will have dire consequences on the economy.

“At this time, it’ll be very difficult [to reduce taxes on fuel], let me be honest with you. The government will make room but not to this extent. You see, you budgeted for between $60 to $70 a barrel and now fuel prices are $110 first times since 2014 so if you don’t take care and you say I’m going to reduce taxes on fuel to appease the opposition who are fanning this sort of argument, knowing that it’ll lead to a collapse of the economy for them to tell you that ‘aah he’s collapsed the economy, now he can’t pay salaries, there’s nothing for infrastructure’.”

He stated that, this “is an opportunity for oxygen to be given to the opposition and I will not advise the government, looking at where the world is and where we stand, to take off the taxes now.”

Fuel prices have crossed the GH¢8 mark at the pumps as predicted by analysts.

This has been largely attributed to the increase in international crude prices as a barrel sells for almost $120 per barrel leading to a general outcry from the public for government to reduce some taxes on fuel.

Meanwhile, it has been projected by the Chamber of Petroleum Ghana (COPEC) that fuel prices may hit GH¢9 per litre by the end of March.

Also, the increase in the prices of crude oil can be attributed to ongoing conflicts between Russia and Ukraine.