Minority Leader Alexander Afenyo-Markin, speaking in Parliament on Tuesday, questioned the rationale behind the Energy Sector Levy (Amendment) Bill, which imposes a new GH¢1 ($0.08) per litre charge on petroleum products. The bill, passed under a certificate of urgency, is projected to generate GH¢5.7 billion ($440 million) annually to address chronic financial shortfalls in the country’s energy sector.

“You said you would not introduce new taxes,” Afenyo-Markin said on the House floor. “Now you repeal the e-levy, only to reintroduce a levy through the back door. Ghanaians are not fooled.”

The levy is intended to help offset Ghana’s ballooning energy sector debt, which the Finance Ministry pegs at $3.1 billion as of March 2025. Officials say the funds will go toward stabilizing power generation and repaying legacy debts owed to independent power producers.

Finance Minister Dr. Cassiel Ato Forson defended the measure, saying the impact on fuel prices would be mitigated by the appreciation of the Ghanaian cedi, which has strengthened against major currencies in recent months. “Consumers will not experience any immediate price increase at the pump,” he told lawmakers.

But former Finance Minister Dr. Mohammed Amin Adam pushed back, warning that the move undermines recent tax relief efforts. “They came celebrating tax abolitions, and now they are introducing a levy that raises more than all those repealed taxes combined,” said Adam, a member of Parliament for Karaga. “This is a case of giving with one hand and taking back with both hands.”

The passage of the bill marks a critical moment for the Mahama administration, which has sought to portray itself as business-friendly and fiscally restrained. Analysts say the government faces growing pressure to balance debt reduction with cost-of-living concerns ahead of the next election cycle.

Source:TheDotNews