The Minority in Parliament has strongly criticised the government’s newly introduced GH₵1 Energy Sector Recovery Levy, describing it as the highest first-time tax rate ever imposed in Ghana’s history.
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Speaking at a press briefing on Monday, June 9, they explained that the levy equates to an 8% charge per fuel transaction, an unprecedented rate compared to how previous taxes were introduced.
“Ghanaians will bear witness that this levy is being charged at a rate of 8% per transaction,” the Minority said. “This makes it one of the highest tax rates introduced in Ghana in a single instance.”
Historically, Ghana has rolled out major taxes, like VAT, with modest initial rates, typically around 1% to 2%, and gradually increased them over time. The Minority insists that jumping straight to 8% signals poor judgment, especially amid economic strain.
“If you study the history of VAT and other revenue handles, you’ll see initial rates often start at 1% or 1.5%. This abrupt 8% charge sets a dangerous precedent,” they noted.
They further described the move as tone-deaf and insensitive, given the financial hardships many Ghanaians are already facing. According to them, this sudden spike in taxation will not only drive up the cost of living but also erode public trust in the government’s economic policies.
The Minority is calling for a review of the levy and a return to more gradual, consultative tax policies that consider the financial well-being of ordinary citizens.
