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Dumsor Levy: Minority Caucus demands full disclosure on GH¢5.7bn Energy Tax windfall

Thu, Jun 5 2025 2:43 PM
in Ghana General News, News, Politics
dumsor levy minority caucus demands full disclosure on ghc2a25 7bn energy tax windfall
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The Minority in Parliament is demanding full transparency and immediate answers from the government following the passage of the controversial Energy Sector Levy (Amendment) Bill, 2025.

At a press conference on June 5, the Minority Chief Whip, Frank Annoh-Dompreh, described the GH¢1 levy on petroleum products as a “predatory tax” that will rake in a staggering GH¢5.7 billion annually—money they say the government has no clear plan for.

“This is not a minor inconvenience,” the Minority stressed. “It’s a significant blow to household budgets and businesses nationwide.

“Fuel is a fundamental input across all sectors, and this tax will ripple through the economy, exacerbating inflation and further eroding the purchasing power of Ghanaians.”

They estimate the levy will drain GH¢475 million from the public every month, and GH¢5.7 billion each year, but say there is “no transparency, no disbursement plan, no timelines. Nothing.”

“What are the clear timelines for the collection and disbursement of these funds?” the Caucus asked.

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“The bill is shrouded in secrecy, lacking any clear guidance on its utilisation. This is unacceptable.”

The Minority accused the government of betrayal and hypocrisy, saying the move directly contradicts earlier promises by the Finance Minister.

“In January, the Minister emphatically stated that tariffs will not be used to raise revenue. Those tariffs will not be used to reward ECG’s inefficiencies. This levy is a complete and unacceptable reversal of that commitment.”

They questioned the silence on reforms at the Electricity Company of Ghana.

“What concrete steps have been taken to address ECG’s inefficiencies?” they asked. “The government’s silence on this critical issue is deafening.”

The Caucus also slammed the rationale that fuel prices have dropped and can therefore absorb the new tax.

“The international oil market is volatile. Fuel prices rise and fall beyond the government’s control. In the unlikely event that fuel prices rise again, what will be the effect of this levy on Ghanaians?”

They described the tax as part of a pattern of broken promises.

“The Minister for Transport convinced drivers to reduce fares by 15%, only to stab them in the back with this fuel levy. Add this to recent increases in electricity and water tariffs—14% and 3% respectively—and it’s clear this government has no empathy.”

While the government scrapped unpopular taxes like the e-levy and bet levy, the Minority argues they’ve only been replaced in disguise.

“They’ve now effectively reintroduced them in full force through this backdoor tax.”

The statement further accused the Majority of ramming the bill through Parliament with reckless haste.

“This bill was passed under a certificate of urgency with the speed of light, while Ghanaians were sleeping. It was a midnight robbery. This is not leadership—it’s the antithesis of good governance.”

They also took issue with the government’s failure to cut its own perks.

“There’s no mention of cancelling the free fuel for government appointees. Are they exempt from the pain they are inflicting on the rest of us? At least, the President and his appointees should walk the talk by sacrificing with us.”

According to the Minority, the “Ato Didn’t Force” slogan now trending reflects the public’s anger.

“It perfectly encapsulates the government’s approach: a forceful imposition of hardship without genuine consideration for the people.”

They are calling for the immediate withdrawal or reduction of the levy, and announced plans to join civil society groups and citizens in street protests.

“We urge all Ghanaians to join us in opposing this unjust and economically devastating tax. This is not just about a one-cedi increase; it’s about the soul of our nation.”

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

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