The Civil Society Organizations (CSOs) is urging the government to introduce stronger policy measures to stabilize the Ghanaian cedi and to include a sunset clause in the proposed Energy Sector Levy (Amendment) Bill, 2025.
Abdul Karim Mohammed, a representative of the Economic Governance Platform, emphasized the importance of making the levy time-bound to enhance transparency and rebuild public trust in the government’s handling of the energy sector.
However, CSOs are drawing parallels to previous levies such as the Energy Sector Recovery Levy and the Energy Sector Levies Act (ESLA)which, despite being introduced as temporary measures, remain in place years later
Speaking at a policy forum ahead of the July 24 mid-year budget review, Abdul Karim Mohammed, Coordinator of the Economic Governance Platform, criticized the levy as a form of “lazy” revenue generation. He urged the government to establish a clear timeline for its termination through a defined sunset clause.
“There’s no sunset clause. We have no specific timeline for how long the government intends to keep this levy,” he said. “Historically, it has become the easiest and frankly, the laziest way for governments to raise revenue.
“We witnessed it during President Kufuor’s administration with the toll recovery levy, and again under President Mahama with the ESLA levy. Both charges are still being collected today,” Mohammed noted.
He also highlighted the broader economic impact of fuel-related levies. “When fuel prices increase, it drives up the cost of goods and services across all sectors. We need transparency and reassurance that this new levy won’t become a lasting fixture,” he stated.
Civil society organizations (CSOs) are expected to submit a formal petition to the Ministry of Finance ahead of the upcoming mid-year budget presentation.
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