A Professor of Finance at Andrews University, Williams Kwasi Peprah, has cautioned the government against fully adopting the GH¢1.65 petroleum price reduction demanded by a coalition of civil society organisations (CSOs), describing the request as “on the high side” for the national treasury.
Speaking on JoyNews’ The Pulse on Tuesday, 14th April 2026, Professor Peprah argued that while he supports the need for relief, the 40% reduction in the total tax build-up requested by IMANI Africa, COPEC, INSTEPR, IES and others could severely cripple government revenue and jeopardise essential projects.
Professor Peprah suggested that instead of the steep GH¢1.65 cut, a 20% total reduction would represent a more balanced and “fair deal” for both the state and the citizenry.
He noted that a 40% cut would amount to a monthly revenue loss of approximately GH¢600 million, whereas a 20% cut would halve that impact to GH¢300 million.
To manage this GH¢300 million monthly shortfall, the Professor urged the government to adopt a “fiscal switch” strategy.
“Government must absorb certain line items in our expenditure build-up. Goods and services or capital expenditure items can really defer to 2027 so that the 300 million being proposed by me will not throw our entire budget and targets out of gear,” he explained.
The Professor was particularly critical of the government’s current proposal for a brief four-week intervention.
Citing the persistence of global conflict and World Bank predictions, he argued that any relief must last at least six months to allow industries, transport operators, and individuals to plan effectively.
“A four-week interval in terms of planning is too short. The war is not going to end now. History tells us even a small war will have an effect of over six months. We must have a more than one-month plan so that investors, companies, and individuals can plan along,” Professor Peprah stated.
With Ghana still navigating an IMF program set to conclude in August, Professor Peprah warned that the state must be wary of missing quantitative targets.
He proposed that the only sustainable way to implement these tax cuts is through a mid-year budget review.
He argued that the government must go to Parliament to officially show which expenditure line items are being reduced to compensate for the revenue loss. He also cautioned against the “permanent removal” of taxes at this stage, noting that every cedi is vital for future pressures, such as anticipated demands from labour unions for wage increases due to inflation.
On President John Mahama’s hint of sourcing fuel from the Dangote Refinery in Nigeria, the Professor called it a “good thing” for supply chain security.
While the price of crude would remain at world market rates, he noted that Ghana could see significant savings on freight costs due to the short distance.
He also suggested that if the trade falls under ETLS (ECOWAS Trade Liberalisation Scheme), there could be additional tax benefits for the country.
Professor Peprah concluded by stating that the “worst-case scenario” would be for the government to take no action at all, but insisted that any intervention must be targeted and backed by a transparent realignment of the 2026 budget.
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Source: www.myjoyonline.com
