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Minority unhappy over suspension of fuel levy, demands full repeal

Published 16 hours ago3 minute read

The Minority Caucus in Parliament is opposed to the government's decision to suspend the implementation of the controversial Energy Sector Levies (Amendment) Act, 2025, popularly referred to as the Dumsor Levy.

The Ghana Revenue Authority (GRA) has suspended the proposed levy, which was scheduled to take effect on Monday, 16 June 2025.

In a statement issued on Sunday, 15 June by the Minority Caucus in Parliament, it expressed condemnation of the decision to postpone the implementation of the levy just days before its scheduled commencement, describing it as evidence of a “chaotic and inconsistent approach to economic governance.”

It stated that “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 government’s justification—citing global crude oil price volatility arising from the Israel-Iran conflict—was criticised by the Minority as hypocritical and dishonest. It was pointed out that the same administration that had lambasted the Akufo-Addo government for attributing challenges to global events was now relying on similar arguments to explain its own policy inconsistencies.

A demand has been made by the Minority for Parliament to be urgently reconvened so that the levy can be repealed altogether, with the postponement described as “wholly inadequate.”

It was asserted that “the Dumsor Levy was a terrible idea from the onset.” At a time when the citizenry is burdened by a high cost of living, the imposition of additional fuel taxes was labelled economically reckless and morally indefensible.

Claims by the government that the levy was necessary to stabilise the energy sector and address legacy debts were rejected by the Minority, who argued that a stable power supply had been maintained by the previous administration without recourse to punitive taxation.

Further warnings were issued against any attempt by the government to blame a worsening power crisis on the suspension of the levy. Operational inefficiencies at the ECG, poor metering systems, and a failure to maintain the Loss Reduction Programme introduced by the previous administration were instead cited as the root causes.

It was declared that “the notion that Ghana’s energy woes are due to the absence of this levy is categorically rejected. They are the product of poor leadership and mismanagement.”

In conclusion, the Minority Caucus reminded the government of its electoral promise to ease economic burdens, not to impose new ones. A vow was made to resist “any regressive fiscal policies that worsen the plight of citizens.”

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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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