The Minority in Parliament has accused the government of betraying public trust with the sudden introduction of the controversial ghc1 Energy Sector levy (D-Levy), barely six months after taking office.
Ranking Member on the Energy Committee, George Aboagye, described the move as “hypocrisy” and a complete policy U-turn.
“The NDC in less than six months has imposed a levy they swore they never would. It’s a 360-degree turnaround,” Aboagye said, calling it a betrayal of public trust. He also criticized the government for pushing the bill through Parliament without consultation.
“There was no transparency, no stakeholder engagement. It was sneaked through clandestinely. It defeats everything they say they stand for,” he added.
Aboagye further questioned the conflicting messages from the President and the Energy Minister on the levy’s purpose, saying the lack of clarity raises serious doubts about the government’s intentions.
Read full statement below:
STATEMENT
- Ladies and Gentlemen of the press good afternoon and thanks for attending upon our invitation.
- We’ve invited you here this morning to share with you the Minority Caucus’ position, calls on government and consequential next steps on the newly slapped additional 8% levy (equivalent to GHS 1 per liter on petroleum products) on the people of Ghana.
- Since the night of Tuesday when this levy was sneaked into Parliament and hurriedly passed, we have embarked on a number of engagements aimed at drawing the attention of Government to this very painful pill. Observing that Government doesn’t intend to listen, we find it prudent to update the nation on our position and next steps.
The Hypocrisy
- From the onset, we will like to put on record our astonishment that this government, in a 360 degree turnaround, and in stark contrast to all its promises has in less than 6 months, imposed on Ghanaians the very levy they swore they never will. As Ghanaians will recall the NDC then in opposition swore that it will never impose taxes to pay for the inefficiencies in the energy sector. (Dr. Cassiel Ato Forson on March 11, 2025 during 2025 budget presentation –“we will not impose taxes to pay for the energy-sector debt”)
- Even NDC members and Civil society actors are shocked that so quickly, the government has done the very thing it swore heaven and earth it will never do. Why will you impose a levy to pay for the inefficiencies in the energy sector when you swore you will never do that? This is hypocrisy of the highest order. This is a betrayal of the public trust. This is an act which takes the goodwill of Ghanaians for granted. The Government is operating with the mindset that it has so much goodwill so it can do anything and get away with it. They can lie to the people to win power and after winning stab the people in the back.
- This government knew all the details about the energy sector challenges and make specific promises to Ghanaians on it. They did so, knowing very well they had no intention of fulfilling them. Indeed, they knew they would do the exact opposite. But they made these firm promises with a view to scam the unsuspecting voter and trick the voter into giving them power. Today we have come full circle on the energy sector levy. This hypocrisy, this unethical behavior will not be allowed to pass.
- In an attempt to normalize the hypocrisy and betrayal of trusty, the NDC has recruited its mouthpieces to attempt to deceive Ghanaians that it is only a 1 Ghana cedi sacrifice and all must go along. Any so called neutral who does the NDC’s bidding in this scam should be ashamed of himself or herself. You are part of the problem.
The faulty reasoning
- The NDCs hypocrisy has now been exposed by the fact that in their bid to justify what they knew they will do, they have now come up with confusing explanations as to why this levy is needed and inevitable.
President Mahama on May 13, 2025 – Africa CEO Summit, Abidjan: “We’re using the proceeds from the Energy Sector Levy to pay down the arrears.”
John Jinapor on June 4, 2025 – Joy FM/ Citi FM /Joy News: “This levy is not intended to pay off legacy debt. … The liquid fuels we currently purchase are not part of the tariff structure. … We require over US $1 billion this year alone to procure liquid fuels.”
- So, which is which? Is this levy to pay debt or to buy fuel? The NDC has forgotten that they had announced earlier that they will finish the payment of the energy sector debt by December 2026. Citinewsroom.com reports President Mahama on May 13 2025 from Abidjan at the Africa CEO conference as announcing that he will clear the energy sector debt by December 2026.
At the time this was announced they had not told the people of Ghana that they were going to introduce a levy to attempt to do this (assuming this levy is for debt payment) so is it that they had planned this levy all along and lied that they won’t impose a levy, or didn’t have a clue but were just promising?
- Further, assuming without admitting that this is for debt payment, how can you pay US$3.1 billion (about GHC80 billion) total debt with GHC9.0 billion which will accrue by December 2026 from this levy? Is that even feasible? And if indeed this is for debt payment, why are they after telling us that the debt will be paid by 2026 December now turning around to say even the levy is not enough? Ladies and gentlemen, the hypocrisy and the ill intent from the beginning has now been exposed by their confusing reasoning
The clandestine approach
- Ladies and gentlemen of the press, it is very important to know the very clandestine manner in which the NDC sneaked this bill into Parliament without prior notice, and rushed it through in the dead of the night simply to avoid scrutiny.
- This bill was never advertised on the order paper for the day. In fact, it was not even discussed at the business committee meeting prior. It was not included in the business statement for the week. Instead, it was sneaked through by a 1-page order paper addendum getting to the end of sitting on the said day under a certificate of urgency. And the majority side whipped it through refusing to pull the brakes for any form of consultation with civil society, driver unions or everyday Ghanaians. Why would a party that campaigned on the grounds that they were championing the interests of Ghanaians now be sneaking Tax bills into Parliament in the middle of the night and rushing it through before Ghanaians wake up? Why will a party that claimed they had the Ghanaian interest at heart refuse to allow debate and public representation on tax bills which they didn’t advertise at budget time?
The clandestine approach also exposes the ills of the government in this matter and will not be allowed to pass.
The high rate of this levy
- Ladies and gentlemen now to the rate being charged. Ghanaians will bear witness that this levy is being charged at a rate of 8% per transaction. 8%. This makes it one of the highest tax rates introduced in Ghana in a single instance.
- Even if this levy wasn’t hypocritical and had an honest justification, why will this government impose a levy with an 8% transaction rate on the people of Ghana? This is simple wicked. And to think that this 8% on every gallon of fuel to pay for the inefficiency in the energy sector is simply a stab in the back.
- For every 1 Gallon of petroleum product you buy, this Government is taking an additional tax of GHS 4.50 (8%). We recall the NDC’s claim that the then NPP government had done no work for Ghanaians and didn’t deserve to take 1% levy on Momo transactions. So, what has the NDC done for Ghanaians to take 8% tax on every gallon?
Comparing e-levy to D-levy
- Ladies and gentlemen of the media, it will be recalled that when the NPP introduced the e-levy our then colleagues in opposition bastardized it and told Ghanaians it represented thievery. Unfortunately, a good number of Ghanaians bought into their propaganda. Let us compare the e-levy to the Dumsor levy which has now been introduced by the NDC.
- The e-levy was advertised in the budget, followed up with town hall meetings and onboarded extensive public consultations before its introduction. This D-levy was smuggled through to avoid any form of public engagement and consultation. It was neither advertised in the budget nor on the main order paper of the day. Midnight robbery.
- The e-levy had an effective rate of 1% per transaction yet was described as pick pocketing. The Dumsor levy is effective 8% on a transaction. Midnight robbery.
- The e-levy avoided transactions of less than 100 Cedis. The poor were exempted. The Dumsor levy has no minimum threshold. The poor are the most affected because unlike to the rich, every cedi counts. Midnight robbery.
- The e-levy was payable only by people who opened to do money transfers. The Dumsor levy is payable by all Ghanaians. Except you decide to walk everyday. Indeed, even farmers who buy fuel for their tractors will Pay as well as persons who buy fuel for any other purpose.
- While the e-levy had a limited cascading effect, the D-levy has a total cascading effect as it will affect the prices of transportation and consequently any item that is transported; food, clothes etc.
- The e-levy was designed to yield for example approximately 2billion cedis from persons who elected to do transactions. Indeed, when Parliament repealed it, the Majority leader boldly announced that the Government had put back 2 billion cedis into the Pockets of Ghanaians. Now this Dumsor levy has been designed to yield 5.7 billion cedis from all Ghanaians. What is the narrative now? The Govt put 2 billion back into the pockets and while it was taking its hands out, took 5.7 billion out. Midnight robbery.
Alternatives
- The Minority believes strongly that if this government is minded to pay off the energy sector debts it should do the ff:
– conclude the renegotiation of the PPAs that pass on fuel and capacity charges to government. Instead, Government should include these in the tariff calculations to eliminate the need for off- book debts caused by the take or pay clauses in the NDC’s energy sector contracts signed between 2013 and 2016 (the major cause of the energy sector debts)
– quicken efforts to bring efficiency into the operations of the GRIDCO and ECG to reduce transmission, distribution and other technical losses.
– pursue the NPPs strategy to go heavily into renewable energy as advertised in the NPP manifesto of 2024 to reduce the need for fuel importation and its consequent negative impacts on the economy. Recall that in our 2024 Manifesto the NPP promised to add an additional 2,000 megawatts of solar power to our national energy mix.
Next steps
- Ladies and gentlemen, it is already clear that the government intends to go ahead with the implementation of this draconian levy and not listen to any plea, reasoning or alternative ideas. We as a minority group, representing over the 10million Ghanaians will therefore do the ff:
– continuously engage the people of Ghana, CSOs, Driver unions and the media to showcase the draconian and negative impact of this love by government
– continue to stand with the groups of honest Ghanaians like the driver unions as they oppose this levy
– Continue to stand in solidarity with the chamber of Oil Marketing Companies in their position that the downstream sector is being overtaxed by Government with the effective rate now at 26% of ex-pump price.
– continue with our advocacy to government to withdraw this levy and adopt the less painful and more pragmatic options we have suggested in today’s press conference
We are grateful for your attendance and look forward to further engagements on this subject.
