Renowned economist and Professor of Finance, Godfred Alufar Bokpin, has dismissed claims that the GH¢1 fuel levy and the controversial electronic levy (e-levy) implemented under the New Patriotic Party (NPP) government are similar.
Some critics have drawn parallels between the two taxes, claiming both measures place an undue burden on consumers.
However, speaking on Morning Starr with Naa Dedei Tettey, Prof. Bokpin argued that the e-levy was fundamentally flawed and economically unjustifiable, unlike the fuel levy, which he views as necessary under current circumstances.
Prof. Bokpin explained that taxing the growing digital economy prematurely, as was done with the e-levy, was counterproductive.
“They are not similar. They are on different pathways. I am unable to situate these levies side by side with E-Levy, not at all. The argument with E-Levy and the fact that it just didn’t meet the basic principles of taxation in economics, and from conceptualization to implementation, clearly was wrong.”
He said the global transition toward a digital economy should be nurtured, not taxed harshly in its early stages.
“Our argument then was that if you look at the economy, if you look at the traditional economy based on bricks and mortar, and you look at the digital economy which is based on digital apps, technologies, and the rest of them, the projection is that the digital economy was going to expand faster than the traditional economy. And all over the world, the changes and the transition is more towards digital economy.”
“And the digital economy, you can explain it from different pathways. Even in finance, we see the future of finance to be increasingly digital. The future of economics to be increasingly digital. These days we talk about digital economics, digital finance, digital currency. In fact, the future of money is increasingly digital. The future of business is increasingly digital. So digitization is not a standalone intervention in terms of using it to collect taxes.”
He argued that even leaders within the NPP, including its flagbearer and then-Vice President, had come to acknowledge that the e-levy was a mistake, describing it as a classic case of a “nuisance tax.”
In contrast, Prof. Bokpin defended the GH¢1 fuel levy as a pragmatic move, especially in light of the recent appreciation of the cedi, which has eased fuel prices at the pump.
He noted that under the current circumstances, the fuel levy would have a relatively lighter impact on consumers compared to periods of severe economic volatility.
“And we all agree, even including the vice president at that time, and the flag bearer of the NPP, that e-levy had to go. There are taxes that you can classify as nuisance. E-levy was one of them. The effect of this levy, yes, of course, given that there is an aggressive spending of the currency, the impact will not be so heavy on consumers as compared to a situation where the currency, the economy has been quite volatile like we used to have in the time past.”
The GH¢1 fuel levy was introduced through the Energy Sector Levy (Amendment) Bill, 2025, passed by Parliament on Tuesday, June 3.
The measure imposes a GH¢1 tax on every litre of petroleum product — a decision that has drawn criticism from transport unions, the general public, and the Minority in Parliament.
However, government officials, including Finance Minister Dr. Cassiel Ato Forson, have defended the levy, calling it a necessary intervention to address the country’s \$3.1 billion energy sector debt.
The Minister also assured Ghanaians that the new tax would not lead to an increase in fuel prices due to recent gains in the value of the cedi.
Revenue from the levy is expected to be used to purchase fuel for electricity generation, helping to minimise power outages and stabilise the national grid.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
