Effia MP slams GHS1 fuel levy hike, cites 400% jump

Isaac Boamah Nyarko, the MP for Effia, criticized the recent GHS1 increase on the Energy Sector Levy. This increase follows the passage of the Energy Sector Levy (Amendment) Bill, 2025. The bill allows for a rise in levies on petroleum products. Many people are concerned about how this will affect their cost of living.

In an interview with Channel One Newsroom on June 4, Nyarko expressed his frustration. He pointed out that this decision contradicts earlier promises to reduce taxes. He noted that the new levy is much higher than the previous electronic levy (e-levy). The current government had previously criticized and abolished the e-levy.

Nyarko stated, "You promised Ghanaians you would remove taxes." He explained that the e-levy was only 1% and generated GHS1.2 billion. People were charged GHS10 for sending GHS1000 under that system. Now, he believes a tax increase of over 400% is excessive.

He emphasized that citizens should not feel deceived by their government. The new GHS1 fuel levy aims to generate GHS5.7 billion annually. The government claims all revenue will support energy-related expenses like debt repayment and fuel procurement.

However, the Minority Caucus opposed the bill's passage. They walked out during voting, claiming there was not enough quorum to approve it legally. They also described the levy as poorly timed and burdensome for citizens.