President Akufo-Addo has emphatically told labour unions that calling for his government to remove taxes on petroleum products is not workable.
He defended that part of the revenues from the taxes on petroleum products is what is used to pay the salaries of some of the seven hundred thousand (700,000) public sector workers on the government’s payroll.
Addressing labour unions on May Day, Nana Addo said: “Removing taxes on petroleum products will reduce government revenues by some GH¢4 billion.
“At this time, when we are determined to expand government revenues to increase our capacity to finance our development, can we afford to reduce tax revenues by GH¢4 billion?” he asked.
“We are addressing the issue of fuel price increases by implementing measures that are succeeding in stabilising the exchange rate, a key determinant of fuel prices.
“Government is also working hard to ensure reliable supply and availability of petroleum products, thereby, preventing shortages, a phenomenon which is being experienced in some other neighbouring countries. By the same token, we are keeping the lights on in Ghana,” he emphasised.
Additionally, President Akufo-Addo said intense efforts are being made to rehabilitate the Tema Oil Refinery (TOR) to enable it to contribute to stabilising petroleum prices.
The President’s statement on the May Day followed the continued demand by public sector workers, who through their umbrella body, the Trades Union Congress (TUC), had demanded that the government removed taxes on petroleum products to cushion consumers from the rising cost of fuel
Last Thursday, for example, leading oil marketing companies in the country adjusted the price of diesel at their various fuel outlets.
GOIL adjusted the price of diesel from Gh¢10.20 per litre to Gh¢10.65 per litre with Total Energies and Shell also adjusting their diesel prices to Gh¢10.90 and Gh¢10.75 per litre respectively.
