The Minority in Parliament has criticised the government’s newly imposed GH₵1 Energy Sector Recovery Levy, warning that it represents the highest tax rate ever introduced in Ghana at first instance.
According to the Minority, the levy, which translates to an 8% charge per fuel transaction, sets a worrying precedent in the country’s tax regime.
Addressing the media on Monday, June 9, the Minority pointed out that the historical pattern of tax implementation in Ghana has typically started with modest rates, followed by gradual increases.
They argued that the 8% rate is an unprecedented imposition on already overburdened citizens.
“Ghanaians will bear witness that this levy is being charged at a rate of 8% per transaction,” the Minority stated. “And this makes it one of the highest tax rates introduced in Ghana in a single instance.”
Drawing comparisons with previous taxes, the Minority noted that when VAT and other major levies were first introduced, the initial rates were significantly lower.
“If you study the history of VAT and some of our revenue handles, you will notice that at the first instance of introduction, sometimes it is 1%, 1.5% or 2%,” they explained.
“Then, as the years go by, you may find some additions and consolidations. But for this particular levy, the government is charging the people of Ghana 8% immediately.”
The Minority condemned the move as insensitive, particularly in light of the economic hardships facing many Ghanaians, including rising fuel prices, transport costs, and inflation.
They argued that the levy would not only worsen the cost of living but also undermine trust in the government’s fiscal approach.
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