By Francis Kobena Tandoh
Ghanaian president John Dramani Mahama on Wednesday defended the GH₵1 cedi levy his government has imposed on the people, describing it as a necessary and justifiable step to stabilise the country’s energy sector.
Addressing stakeholders at the presidency on the rationale behind the new levy, President Mahama acknowledged the concerns expressed by the Ghanaian people but emphasised that the decision was crucial to securing Ghana’s energy future.
“This decision, though difficult, is necessary and justifiable,” he stated when the National Economic Dialogue Planning Committee presented its final report to him in Accra on Wednesday June 4.
According to the Ghanaian leader, the levy was expected to generate an estimated GH₵5.7 billion annually which will help address the erratic power supply in the country locally referred to as ‘dumsor.’
He assured Ghanaians that the additional revenue would be ring-fenced and used exclusively to tackle critical issues in the energy sector.
“This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” added President Mahama.
The Energy Sector Levy (Amendment) Bill, 2025, which was laid before Parliament by Finance Minister Dr. Cassiel Ato Forson and passed on Tuesday, June 3, increases the levy on petroleum products by GH₵1. The move is aimed at raising revenue to address growing debts in the energy sector and to support power supply reliability.
Presenting the bill, Ato Forson justified the tax increase citing the urgent need for funds to clear energy sector debts, which currently stand at GH₵ 3.1 billion. He also noted that the government requires 3.7 billion U.S. dollars to clear the debt and an additional 1.2 billion U.S. dollars to secure fuel for thermal power generation in 2025.
The Finance Minister argued that the impact of the tax would be cushioned by the recent stability of the cedi, which has helped reduce import costs, especially in the petroleum sector. Enditem
Source: Ghana Eye Report
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