Financial Analyst Criticises Increased Fuel Tax, Says It Will Widen Gap Between Rich and Poor

• Financial analyst Richard Adjorlolo has criticised the increased tax on fuel, calling it unfair to both the rich and poor
• He urged the government to reconsider the increment, claiming it would widen the gap between the wealthy and the less privileged
• Meanwhile, the NPP and concerned Ghanaians, including Takoradi resident Philip Ampofo, have expressed disappointment

A Western Region-based financial analyst, Richard Adjorlolo, has criticised the newly introduced increment in the energy sector levy.

He referred to it as 'not good', citing its flat and indirect nature, which affects both the rich and the poor.

Adjorlolo said the tax increment would only widen the gap between the rich and poor citizens, urging the government to take action.

“This is a flat and an indirect tax, which the impact on the haves and have-nots is the same. The concern is that the rich and the poor will pay the same amount. And any tax that has such a feature is not good,” he said.

Despite his criticism, the financial analyst commended the government for abolishing some taxes, such as the e-levy and betting tax.

These tax removals, he stated, had alleviated some of the burdens on Ghanaians and made life a bit easier for them.

He said the government’s honouring its word to remove the nuisance taxes and subsequently increasing the energy sector levy was a smart move.

“The betting and E-levy, among other taxes the government promised to scrap, have been removed to bring some relief, and, therefore, I don’t think this new tax will be a problem, as some may believe,” he added.

NPP wants CSOs to oppose fuel tax

Also reacting to the tax increment, the Western Regional Communication Officer of the opposition New Patriotic Party (NPP), Issah Fuseini, called on all Ghanaians, especially the Civil Society Organisations (CSOs), to oppose it, citing the government's refusal to allow parliamentarians to scrutinise the bill.

Fuseini argued that the government lacked justification for imposing the levy, given the previous administration's efforts to stabilise the energy sector.

“We strongly oppose this bill because the government should have allowed all parliamentarians to scrutinise it. Everyone would have criticised it, so that a good percentage would have been settled on and accepted by all Ghanaians. They pushed it through under the emergency certificate.”

Philip Ampofo, a resident of Takoradi, criticised the government's move, citing broken promises not to impose new taxes.

However, he also expressed hope that the fuel tax would be used for its intended purpose.

“I was surprised, as this is not what they promised us, as Ghanaians. They assured us they would not impose any new taxes when we voted for them, and now this,” he noted.

Fuel tax sparks concerns in Volta Region

In a related development, YEN.com.gh reported that residents in the Volta Region shared mixed reactions to the newly introduced fuel tax.

Despite government assurance that fuel prices would not rise, many locals remained skeptical, citing past fluctuations after similar tax hikes.

Some drivers, traders, and teachers in the area expressed mixed feelings about the levy, fearing a ripple effect that could impact their livelihoods.

Proofreading by Bruce Douglas, copy editor at YEN.com.gh.

Source: YEN.com.gh