Repeal ‘dumsor’ levy, don’t suspend it – Minority tells government

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The government’s move to halt the implementation of the contentious Energy Sector Levies (Amendment) Act, 2025, often known as the Dumsor Levy, has drawn criticism from Parliament’s Minority Caucus.

The proposed levy, which was supposed to go into effect on Monday, June 16, 2025, has been halted by the Ghana Revenue Authority (GRA).

The Minority Caucus in Parliament condemned the move to delay the levy’s implementation just days before it was supposed to start, calling it proof of a “chaotic and inconsistent approach to economic governance” in a statement released on Sunday, June 15.

According to the statement,  “this eleventh-hour U-turn epitomises a trial-and-error strategy and reveals a disturbing lack of stakeholder engagement before the passage of the law.”

The Minority criticized the government’s rationale as being dishonest and hypocritical, pointing to the volatility of the world’s crude oil prices caused by the Israel-Iran conflict. It was noted that the administration that had criticized the Akufo-Addo administration for blaming difficulties on world events was now using the same justifications to defend its own inconsistent policies.

The Minority has demanded that Parliament meet immediately again in order to remove the levy completely, calling the delay “wholly inadequate”

“The Dumsor Levy was a terrible idea from the onset,” it was claimed. The implementation of new fuel taxes was deemed both fiscally imprudent and morally unjustifiable at a time when the public is already burdened by a high cost of living.

The Minority questioned the government’s claims that the charge was required to handle legacy debts and stabilize the energy industry, arguing that the previous administration had maintained a reliable electricity supply without using punitive levies.

Additional cautions were given against any attempt by the government to attribute the levy suspension to a deteriorating power situation. Instead, the primary causes were identified are operational inefficiencies at the ECG, subpar metering systems, and a failure to uphold the Loss Reduction Program, which was implemented by the previous government.

“The notion that Ghana’s energy woes due to absence of this levy is categorically rejected,” it was declared. They are the result of inadequate management and leadership.

The Minority Caucus concluded by reminding the administration that it was elected to reduce economic burdens rather than add new ones. They pledged to oppose “any regressive fiscal policies that worsen the plight of citizens.”

Source: Ghanatodayonline.com

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