Private legal practitioner and energy expert, Kwame Jantuah, has likened the newly announced GHC1 cedi Energy Sector Levy to selling the family car to pay off a mountain of debt.
He described the government’s new tax as a necessary but painful choice.
Speaking on the KeyPoints on June 7, Jantuah said if Ghana’s energy debt situation were a household problem, any responsible parent would sit their family down and make hard decisions.
“Would you not sit with your wife and children and say, ‘We’ve got to sell the car because we have a huge debt to pay?’” he asked, stressing the urgency and seriousness of the crisis in the country’s energy sector.
For him, the levy is a “necessary evil.”
However, he said clear explanations should be given on when the collection of the levy will cease.
Jantuah believes the government missed a critical opportunity to provide detailed updates on the ESLA (Energy Sector Levy Act), particularly how much has been collected, what’s been mortgaged, and what’s still left.
He also questioned whether those close to power, including presidential appointees, are sharing the burden equally.
“Do they buy fuel with their own money or through coupons? If we are all sharing, then everyone must be part of that burden, he stated.
The levy, tied closely to the strength of the cedi, risks becoming more expensive for Ghanaians if the currency weakens.
Jantuah pushed for a clear timeline asking whether this levy is temporary or indefinite like the COVID levy?
Transparency, he said, must be at the core: “There must be constant advising of the public on how the debt is being paid down. That’s how you build trust.”
