The GPRTU hopes tax cuts will reduce fuel prices in 2025, easing transportation costs, supporting SMEs, and benefiting the broader economy.
The Ghana Private Road Transport Union (GPRTU) has expressed optimism about the possibility of fuel price reductions in 2025, hinging their hopes on tax reforms under the new government.
The union has called for the scrapping or reduction of specific fuel taxes and levies, which it believes are key contributors to the high cost of fuel and, by extension, the financial strain on the transportation industry.
Speaking to The Ghana Times, Mr. Abbas Moro, Public Relation Officer for GPRTU, highlighted the impact of taxes on fuel prices and their cascading effects on the industry.
“We are hoping fuel prices will come down. We are not trying to put any burden on the government per se, but there are some taxes and levies we believe should be reduced or scrapped altogether, which will automatically reduce the price of fuel for us,” he stated.
Mr. Moro revealed that the union had previously proposed the removal of three to five taxes on fuel, which they identified as unnecessary burdens on the transportation sector.
However, he acknowledged that the union is uncertain about the new government’s plans and is adopting a wait-and-see approach. “We can’t tell what this new government will want to do, so let’s enter next year and see what we enjoy out of it,” he added.
The GPRTU emphasized that taxes on fuel have a direct impact on transportation fares, making it increasingly difficult for the industry to maintain affordability for passengers while sustaining operations.
Mr. Moro pointed out that the reduction or removal of these taxes would not only benefit the transportation industry but also provide relief to the broader economy by stabilizing prices and reducing inflationary pressures.
The potential impact of this move could be far-reaching. Reduced fuel prices would likely lower transportation costs across the board, making travel more affordable for passengers and easing the financial burden on businesses that rely on logistics and transportation.
For small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s economy, lower transportation costs could improve profit margins and enhance competitiveness.
Additionally, the reduction in transportation costs could stimulate economic activity by increasing mobility and accessibility. Households would retain more disposable income, potentially boosting spending in other sectors of the economy.
For the agricultural sector, which heavily depends on transportation to move goods from farms to markets, lower costs could improve supply chain efficiency and reduce post-harvest losses, leading to more stable food prices.
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As the country prepares to enter the new year, the GPRTU remains hopeful that the government will take actionable steps to address these concerns and implement policies that support the transportation sector. “We are hopeful we will enter the new year with all the strength and all the good things that we are wishing to have in our industry.” Mr. Moro stated.
