Former Vice President Dr. Mahamudu Bawumia has cautioned Ghanaians to brace for more severe taxation under the administration of President John Mahama.
Speaking during his thank-you tour in the Central Region, the 2024 presidential candidate of the New Patriotic Party (NPP) accused the National Democratic Congress (NDC) of misleading the public. He claimed the NDC had promised not to introduce new taxes but had already implemented a controversial fuel levy within six months of taking office.
“They’ve introduced something called the dumsor levy, which is eight times the E-Levy. If you buy fuel worth GHC 1,000, you’ll pay GHC 83 as dumsor levy. Just prepare, there’s more to come,” Bawumia stated.
New Fuel Levy Passed
On Tuesday, June 3, Parliament passed the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency. The new law imposes a GHC 1 charge per litre of petroleum products to fund energy sector debt and fuel procurement. The government expects the levy to raise an additional GHC 5.7 billion annually.
Finance Minister Dr. Cassiel Ato Forson told Parliament that the energy sector’s total debt stood at US$3.1 billion as of March 2025, with at least US$3.7 billion needed to settle it. An additional US$1.2 billion will be required to secure fuel for thermal generation through 2025.
He added that the levy’s impact on fuel prices would be absorbed due to the strong performance of the Ghana Cedi, promising no immediate increase in ex-pump prices.
Backlash from Parliament
The government’s decision has faced backlash.
Former Finance Minister Dr. Mohammed Amin Adam criticized the move, pointing out that the Mahama administration had previously celebrated tax repeals. “All the taxes they abolished didn’t even amount to GHC 5 billion. Now they want to raise GHC 5.7 billion with this levy,” he said.
Dr. Amin Adam likened the move to a bait-and-switch:
“They give with the left hand and take with the right, plus what’s in your pocket.”
Minority Leader Alexander Afenyo-Markin also slammed the government’s reversal on tax policy. “You promised no new taxes in your 2025 budget. Now you’ve repealed the E-Levy only to bring back a new version,” he told Parliament on June 3.
