Minority labels Dumsor Levy ‘midnight robbery’

The Minority in Parliament has launched a scathing attack on the government over the introduction of a new 8% levy on petroleum products—equivalent to GHS 1 per litre—describing it as a betrayal of public trust and “midnight robbery.”
Addressing a press conference on Tuesday, the Minority Caucus criticised the manner in which the levy, dubbed the "Dumsor Levy", was introduced and passed in Parliament, calling it hypocritical, deceptive, and harmful to ordinary Ghanaians.
According to the Minority, the bill was "sneaked into Parliament" late at night under a certificate of urgency without prior notice, consultations, or advertisement on the order paper.
They accused the government of deliberately avoiding scrutiny and public engagement.
The Minority, led by George Kwame Aboagye, slammed the government for what he described as a "360-degree turnaround" on promises made about the energy sector.
He reminded Ghanaians that the ruling party, while in opposition, vowed never to impose taxes to cover inefficiencies in the energy sector.
"This is hypocrisy of the highest order. It’s a betrayal of the public trust," he said. “They campaigned against taxes like this, but now impose an 8% levy on fuel? That’s a stab in the back.”
The Caucus cited conflicting statements from government officials, including President John Mahama and Energy Minister John Jinapor, as evidence of inconsistencies and a lack of clear justification for the levy. While the President reportedly stated the funds would go towards clearing arrears, the Energy Minister suggested it would be used to procure fuel.
The Minority questioned the feasibility of using the GHS 9 billion expected from the levy to settle an estimated US$3.1 billion (GHS 80 billion) energy sector debt by December 2026. They argued that the levy would do little to resolve the underlying structural challenges and instead increase the burden on consumers.
They also criticised the rate of the levy, calling it one of the highest single tax rates ever imposed on fuel transactions in Ghana.
“For every gallon of fuel, this government is taking an extra GHS 4.50. Even the controversial E-Levy had a 1% rate and was exempted for the poor. This Dumsor levy has no such considerations—it affects everyone, including farmers and low-income earners,” the Minority stated.
The Caucus drew comparisons between the new levy and the now-defunct E-Levy introduced by the previous administration, arguing that the Dumsor levy is more regressive.
They said while the E-Levy was introduced with public consultations, had exemptions for low-income earners, and raised about GHS 2 billion, the Dumsor levy is projected to rake in GHS 5.7 billion—with no exemptions and far-reaching cascading effects on transportation and consumer prices.
The Minority offered several alternatives, including renegotiating power purchase agreements (PPAs), improving operational efficiency in GRIDCo and ECG, and investing in renewable energy—specifically the NPP’s 2024 manifesto pledge to add 2,000 megawatts of solar power.
Despite anticipating that the government would proceed with implementing the levy, the Minority vowed to intensify its opposition. Their planned actions include:
Engaging civil society organisations, driver unions, and the media to highlight the levy’s impact.
Supporting ongoing protests and concerns raised by the Chamber of Oil Marketing Companies.
Advocating for the withdrawal of the levy and adoption of alternative measures.
“We represent over 10 million Ghanaians, and we will not relent in our fight against this draconian and deceptive tax,” the Minority concluded.
Source: Classfmonline.com/Cecil Mensah
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