Akufo-Addo gov’t has collateralized energy sector levy till 2035 – Mahama

Former President John Mahama says the Akufo-Addo government is unable to remove taxes on petroleum products because it has collateralized the taxes to contract new loans.

Mahama added that the practise of collateralizing taxes for new loans must be curtailed to save the country’s economy from plunging into huge debts.

Today, ESLA cannot be removed as part of our petroleum price build-up because this government spent the money upfront and has collateralised it till 2035

President, Nana Addo Dankwa Akufo-Addo, on Sunday, May 1, 2022, dismissed calls on the government to reduce taxes on petroleum products.

“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 in order to increase our capacity to finance our own development, can we afford to reduce tax revenues by GH¢4 billion?” he quizzed.

Amidst the numerous complaints from consumers that the situation is causing a strain on their finances as the cost of goods and services had risen on account of the changing fuel prices, some analysts have called on the government to consider removing some taxes on petroleum products to bring some relief to Ghanaians.