“The Hypocrisy: From the onset, we would like to put on record our astonishment that this government, in a 360-degree turnaround, and stark contrast to all its promises, has, in less than 6 months, imposed on Ghanaians the very levy they swore they never would. As Ghanaians will recall, the NDC, then in opposition, swore that it would never impose taxes to pay for the inefficiencies in the energy sector. (Dr. Cassiel Ato Forson on March 11, 2025, during the 2025 budget presentation – “we will not impose taxes to pay for the energy-sector debt”).
The Minority in parliament has accused the Majority and the Minister of Finance of sneaking into Parliament recently passed Energy Sector Levy, and they have promised to embark on several engagements aimed at drawing the attention of the Government to “this very painful pill”. Observing that the Government doesn’t intend to listen, we find it prudent to update the nation on our position and next steps.
At a news conference jointly addressed by George Kwame Aboagye Ranking Member on Energy and Mines and Kojo Opoong Nkrumah, ranking on Economics and Development in parliament on June 9, 2025 to share the Minority Caucus’ position on the matter called on government strike out the levy as they announced “consequential next steps on the newly slapped additional 8% levy (equivalent to GHS 1 per liter on petroleum products) on the people of Ghana”.
For now, the Ghana Revenue Authority (GRA) is officially implementing revised levies under the Energy Sector Levies Act, 2025 (Act 114), effective Monday, June.
Meanwhile, the Minority believes strongly that if this government is minded to pay off the energy sector debts, it should do the following:
– Conclude the renegotiation of the PPAs that pass on fuel and capacity charges to the government. Instead, the Government should include these in the tariff calculations to eliminate the need for off-book debts caused by the take or pay clauses in the NDC’s energy sector contracts signed between 2013 and 2016 (the major cause of the energy sector debts)
– Quicken efforts to bring efficiency into the operations of the GRIDCO and ECG to reduce transmission, distribution, and other technical losses.
– Pursue the NPPs strategy to go heavily into renewable energy as advertised in the NPP manifesto of 2024 to reduce the need for fuel importation and its consequent negative impacts on the economy. Recall that in our 2024 Manifesto, the NPP promised to add 2,000 megawatts of solar power to our national.
The Minority promised to continuously engage the people of Ghana, CSOs, Driver unions, and the media to showcase the draconian and negative impact of this love by government
As well as to continue to stand with the groups of honest Ghanaians like the driver unions as they oppose this levy – “Continue to stand in solidarity with the chamber of Oil Marketing Companies in their position that the downstream sector is being overtaxed by Government with the effective rate now at 26% of ex-pump price. – continue with our advocacy to the government to withdraw this levy and adopt the less painful and more pragmatic options we have suggested in today’s press conference.”
