‘Dumsor Levy’ Unjustified – Dr. Amin Adam Condemns Government’s New Energy Tax

Former Minister of Finance, Dr Mohammed Amin Adam

Former Minister of Finance, Dr. Mohammed Amin Adam, has issued a strong critique of the government’s introduction of the Energy Sector Levies (Amendment) Bill, 2025, describing it as a veiled attempt to deny Ghanaians the full benefits of the cedi’s recent appreciation.

Speaking during a parliamentary debate on Thursday, June 5, 2025, Dr. Amin Adam argued that instead of allowing citizens to experience the expected economic relief from a stronger cedi, the government is undermining this gain by imposing what has become known as the “Dumsor Levy.”

He contended that the government’s actions are inconsistent with its public commitments and reflect a lack of fiscal responsibility. According to Dr. Amin Adam, the new levy—which adds an extra GH¢1 charge to each purchase of petroleum products—effectively punishes Ghanaians for an economic improvement they should be benefiting from.

“The NDC government is taking Ghanaians for granted,” he declared. “The Finance Minister rightly noted that the appreciation of the cedi should lead to lower petroleum prices—this is basic economic logic. So why impose a levy that cancels out that benefit?”

Dr. Amin Adam further questioned the fairness of the policy, rhetorically asking:

“What offense have Ghanaians committed to be denied the benefits of the cedi’s appreciation through reduced fuel prices?”

He stressed that it is the government’s duty to ensure that citizens enjoy the dividends of sound economic performance, not be burdened by new taxes that neutralize those gains.

“We are all celebrating the cedi’s appreciation—and I join in that celebration,” he said. “But I would celebrate even more if those gains were reflected in reduced fuel prices. This clawback of benefits is not the mark of a responsible government.”

The so-called Dumsor Levy was introduced to Parliament by current Finance Minister Dr. Cassiel Ato Forson under a certificate of urgency. Formally titled the Energy Sector Levies (Amendment) Bill, 2025, the proposed legislation seeks to increase the Energy Sector Shortfall and Debt Repayment Levy.

According to the government, the measure aims to generate additional revenue to address outstanding arrears in the energy sector, reduce legacy debts, and secure a stable nationwide power supply.

Despite these intentions, the levy has sparked widespread public criticism, with many—including Dr. Amin Adam—calling for greater transparency and urging the government to explore less burdensome alternatives.