Tax Analyst calls for civic consultation before introduction of levies 

Mr. Benaiah Nii Addo, the Executive Director of the Green Tax Youth Africa (GTYA), is advocating for mandatory stakeholder consultations ahead of the introduction of new fiscal measures by the government.

This, he noted, is in accordance with Article 174 of the 1992 constitution which outlines the legal framework for taxation.

Mr. Addo, in a recent press statement titled, “Power Sector Vicious Cycle of Debt and Tax Injustice Regimes”, copied to the Ghana News Agency, indicated that the ‘1 Ghana,1 litre’ Levy was imposed without civic consultation.

Following the same trend of urgency to address Ghana’s power sector crisis, he said, various power sector reform measures were implemented between 2020 and 2024, which failed to achieve its aim.

Mr. Addo recalled the implementation of the Energy Sector Recovery Levy of Gh¢0.20 per litre on petrol and diesel and the Gh¢0.10 per litre as the Sanitation and Pollution Levy.

These were implemented under the Energy Sector Levies (Amendment) Act, 2021 (Act 1064) to stabilise Independent Power Producers (IPPs) payments and reduce debt.

Additionally, the Emissions Levy Act, 2023 (Act 1112), the IMF Extended Credit Facility (2023 – 2026) and others were all implemented to generate revenue to clear debts but failed.

Mr. Addo indicated that the new levy on petrol and diesel was a ‘textbook case of history’ repeating itself without broad consultation, transparency or clear expenditure framework.

According to him, these levies are regressive and could potentially put more burden on the marginalized through the high cost of transportation and food.

“Levy not only increases the cost of transportation and food but also disproportionately affects the poor, thereby widening the inequality and equity gap in the country,” he stated.

He said Ghana’s power sector was not just a crisis but stuck in a policy loop that focuses on short-term revenue generation over long-term sustainability.

Mr. Addo urged the government to strengthen the structures in the power sector to avoid demanding more from citizens, who received less than the basic utility services in return.

He charged the government to publish detailed expenditure reports on all energy-related levies to the citizens.

He further called on politicians to desist from the blame game and ensure transparency, accountability, equity, inclusivity and sustainability of policies.

“We call on the government of Ghana to cease the fiscal maneuvers and commit to real reforms, rooted in transparency, equity and inclusivity. Anything less is a betrayal of the trust of the Ghanaian people, especially, the youth, women and the class who inherit the consequences,” he said.

By Naa Shormei Odonkor 

GNA 

The post Tax Analyst calls for civic consultation before introduction of levies  appeared first on The Ghanaian Chronicle.

Read Full Story