You said no new taxes, so why the fuel levy? – Afenyo-Markin to govt

Minority Leader Alexander Afenyo-Markin has criticised the Mahama-led government for introducing a new levy on petroleum products, questioning the administration’s commitment to its promise of avoiding new taxes in the 2025 budget.

Speaking on the floor of Parliament on Tuesday, June 3, Afenyo-Markin pointed out what he called a contradiction in the government’s actions.

“You presented your budget saying you are not going to introduce new taxes and levies, then you turn and say you are repealing e-levy, but now you are bringing back e-levy,” he said.

His comments came after Parliament passed the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency.

The new bill imposes a GH¢1 levy on every litre of petroleum products, expected to raise GH¢5.7 billion annually. The revenue is intended to address the energy sector’s debt and help purchase fuel for power generation.

Former Finance Minister and current MP for Karaga, Dr. Mohammed Amin Adam, also raised concerns about the decision.

“Not long ago, they were here celebrating abolishing taxes, but I am sorry to say that all the taxes they abolished, put together, did not bring us 5 billion Cedis,” he said.

Meanwhile, Dr. Cassiel Ato Forson, the Finance Minister, defended the levy, stating that Ghana’s energy sector currently holds a debt of US$3.1 billion.

He added that an estimated US$3.7 billion is required to clear the debt, with an additional US$1.2 billion needed for fuel procurement in 2025.

He assured Parliament that the levy’s impact on pump prices would be offset by the strengthening of the Ghana Cedi.

Despite this reassurance, Afenyo-Markin maintained that the government was breaking its tax promise and shifting the burden onto consumers.