Minority Slams GH₵1 Fuel Levy as Highest-Ever Tax Rate Introduced at First Instance
The Minority in Parliament has strongly criticised the government’s introduction of a GH₵1 Energy Sector Recovery Levy on fuel, describing it as the highest tax rate ever imposed at the point of introduction in Ghana’s history.
At a press briefing on Monday, June 9, the Minority stated that the levy, which effectively amounts to an 8% charge on every fuel transaction, sets a troubling precedent and places additional financial strain on Ghanaians already grappling with economic hardship.
“This 8% rate is unprecedented,” the Minority asserted. “Ghanaians will bear witness that this levy is being charged at a rate far higher than previous taxes introduced at inception.”
They contrasted the levy with historical tax rollouts, noting that major revenue measures such as VAT typically began with lower rates—often between 1% and 2%—before being gradually adjusted over time.
“If you study the history of VAT and other revenue handles, initial rates were modest—1%, 1.5%, or 2%. Over time, those rates evolved. But with this Energy Sector Recovery Levy, the government is imposing an 8% rate from the onset,” they explained.
The Minority condemned the move as both harsh and ill-timed, arguing that it will deepen the cost-of-living crisis. They cited surging fuel prices, rising transportation costs, and inflation as factors that already weigh heavily on the average Ghanaian.
In their view, the levy not only burdens consumers but also erodes public confidence in the government’s fiscal policy and commitment to economic relief.
Credit: Emmanuel Tetteh
