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The government’s decision to move on with the contentious Energy Sector Recovery Levy has drawn harsh criticism from the minority in parliament, which has threatened a protracted national campaign to oppose what they call a “draconian” and unfair tax bill.
The caucus said during a news briefing on Monday, June 9, that it was now evident that the government planned to proceed with the levy’s implementation in spite of strong resistance.
They responded by announcing a number of planned initiatives to rally public opposition and call for increased accountability.
“It is already clear that the government intends to go ahead with the implementation of this draconian levy,” the Minority said.
“We want to advertise that we would be embarking on the following: We will continuously engage the people of Ghana, civil society groups, driver unions and the media to showcase the true impact of these draconian taxes and the negative levy that the government is imposing on us.”
Additionally, the Minority reaffirmed its backing for the Chamber of Oil Marketing Companies, driver unions, and other interested parties who have publicly demanded that the fee be removed or at the very least put through a more extensive consultation process.
“We would continue to stand with groups of honest Ghanaians, the driver unions, the Chamber of Oil Marketers who are opposing the levy or asking government to pull back and to engage better—not to go by this midnight introduction into Parliament and using their numbers to push it through,” the group declared.
“We know the government has a lot of goodwill, but this is not the way to do things.”
The Minority, echoing industry players, cautioned that the additional fee will increase the already high gasoline tax burden, raising the overall tax component at the pump to over 26%.
“We will continue to stand in solidarity with the Chamber of Oil Marketing Companies in their position that this downstream sector is already heavily over-taxed,” they stated.
“If you add this new levy, effectively about 26% of what you are paying at the pump is all taxes.”
In order to address the financial difficulties facing the energy industry, they urged the government to remove the levy and choose “less painful and more pragmatic options.”
The charge, which was approved on June 3 under the Energy Sector Levy (Amendment) Bill, 2025, aims to generate funds to pay down Ghana’s power sector debt and guarantee a steady supply of electricity.
On June 16, it is anticipated to go into effect.
Source: Ghanatodayonline.com
