The government has assured Ghanaians that the Energy Sector Levy (Amendment) Bill, 2025, will be effectively used for its intended purpose in stabilising the energy sector.
The assurance follows widespread public concern about the implications of the levy.
Even though many Ghanaians say they are not opposed to the tax provided the funds are used transparently and for their intended purpose.
Parliament approved the bill on Tuesday, June 3, as part of urgent measures to tackle the country’s deepening energy sector crisis.
The Finance Minister, Dr. Cassiel Ato Forson, who sponsored the bill, argued that the levy is a necessary tool to generate revenue to address ballooning sector debts, currently estimated at $3.1 billion.
He maintained that the new tax will not immediately affect fuel prices, as the recent appreciation of the Ghanaian cedi is expected to cushion any potential cost to consumers.
However, the Minority in Parliament strongly opposed the bill.
They accused the government of reneging on its promise in the 2025 budget not to introduce new taxes.
In protest, they staged a walkout, describing the move as ill-timed and inconsiderate amid ongoing economic hardship.
Speaking on Morning Starr with Naa Dedei Tettey, the Head of Communications at the Ministry of Energy, Richmond Rockson, reaffirmed the government’s commitment to using the funds responsibly.
He pointed to the mishandling of the Energy Sector Levy Act (ESLA) by the previous administration, accusing them of diverting funds meant for the energy sector.
READ: Gov’t to Periodically Review Energy Sector Levy – Energy Ministry
According to Rockson, the current government will not repeat those mistakes.
“You know this is not the first time, and you are right, ESLA was introduced in 2015 by the president when he was in his first term. What happened at the time, if you check from 2015 to 2016, the funds were being used for intended purposes. The administration took over, and then a fund that was supposed to last for five years, they collateralized it for, the issue burnt out of it for 15 years. They diverted their monies into other areas, DDEP hit ESLA. So at the end of the day, where we are today as a result of the management of ESLA, and the president’s commitment is that the monies will be channelled for its intended purposes.”
“There is no way the monies will be diverted, and from time to time, if that is done, obviously the people of Ghana will see. So that is a commitment that I can give you, that the sector itself is challenged. The sector itself needs this intervention, so there is no way the monies will be channelled into something else. If the monies are channelled into other areas, definitely the sector will suffer, and there is no way the president would want to have any load shedding or will have challenges with power.”
Rockson also reiterated that the levy’s impact will be continuously reviewed, with the possibility of adjusting or scrapping it based on the energy sector’s progress.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
