Thursday, July 3, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
No Result
View All Result

New GH¢1 tax on fuel to generate GH¢5.7 billion annually

Gov't introduces a new fuel tax expected to significantly boost national revenue

admin by admin
June 4, 2025
in Business
0
New GH¢1 tax on fuel to generate GH¢5.7 billion annually
Share on FacebookShare on Twitter

Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, which introduces a GH¢1 levy on every litre of petroleum products sold in Ghana.

The controversial bill was passed late Tuesday, June 3, despite fierce resistance from the Minority Caucus, who staged a dramatic walkout during the voting process.

You might also like

Ghana Eurobond debt

Ghana services $349.52m Eurobond debt

July 3, 2025
Ecobank Google Cloud

Ecobank, Google Cloud partner to expand inclusion in Africa

July 3, 2025

According to the government, the new levy is projected to generate an additional GH¢5.7 billion in revenue each year.

This revenue is expected to be channelled towards addressing the staggering financial challenges of the country’s energy sector, including ballooning debts and fuel supply constraints for thermal power generation.

Energy sector debt hits $3.1 billion

The Minister for Finance, Dr. Cassiel Ato Forson, who laid the bill under a certificate of urgency, painted a grim picture of the sector’s finances.

He revealed that as of March 2025, the energy sector’s total indebtedness stood at $3.1 billion.

Dr. Forson explained that a minimum of $3.7 billion is required to fully clear this debt, while an additional $1.2 billion will be needed to ensure the continuous supply of fuel to Ghana’s thermal power plants throughout the year.

“The levy is a necessary intervention to avoid further disruptions in electricity supply,” Dr. Forson told Parliament.

He assured lawmakers and the public that the impact of the levy on pump prices would be minimal, claiming that “gains made from the strong performance of the Ghana Cedi” would help absorb the cost, at least in the immediate term.

Minority walks out in protest

Despite government assurances, the Minority Caucus in Parliament strongly opposed the measure, calling it an unjust and inappropriate burden on already struggling Ghanaians.

During the approval process, Minority MPs walked out of the Chamber in protest, arguing that the Majority side lacked the constitutional quorum required to pass such a significant fiscal measure.

The walkout underscored the political tension surrounding the bill. Minority spokespersons questioned both the timing and necessity of the new levy, especially coming on the heels of the recent repeal of the unpopular Electronic Transfer Levy (E-Levy).

“This is not the time to impose yet another cost on the Ghanaian people,” a Minority MP said before leaving the Chamber.

In the final hours leading to the vote, Majority Leader Mahama Ayariga made an emotional appeal to Parliament and the nation, urging Ghanaians to support what he termed a “collective sacrifice” to finally resolve the country’s recurring power crises, known locally as “dumsor.”

“This is not the E-Levy,” Mr. Ayariga said pointedly, in an attempt to distinguish the new charge from the recently scrapped mobile money tax that met strong public resistance. “We are asking for just one cedi—just one cedi per litre of fuel—to secure a stable power future for all of us.”

Deepening political divide over energy reforms

While the government maintains that the strong Ghana Cedi will help cushion consumers from a sudden increase in pump prices, Tuesday’s walkout by the Minority highlights the deepening political divide over how best to resolve Ghana’s long-running energy challenges.

Post Views: 221
Tags: Dr. Cassiel Ato ForsonEnergy Sector Levy (Amendment) BillParliament
admin

admin

Related Stories

Ghana Eurobond debt

Ghana services $349.52m Eurobond debt

by NewsCenta
July 3, 2025
0

The Government of Ghana has successfully made a $349.52 million payment toward its Eurobond debt service obligations, bringing the country...

Ecobank Google Cloud

Ecobank, Google Cloud partner to expand inclusion in Africa

by NewsCenta
July 3, 2025
0

Google Cloud technologies to strengthen Ecobank platform for enhanced digital banking, small and medium-sized enterprise (SME) support, and economic development...

Mahama Chinese business

Mahama hosts Chinese business leaders

by NewsCenta
July 2, 2025
0

President John Dramani Mahama has warmly welcomed a high-powered delegation from the World Chinese Business Advancement Association (WCBAA), led by...

Inflation rate June

Inflation rate drops to 13.7% in June

by NewsCenta
July 2, 2025
0

The fight against high inflation reached a notable milestone in June 2025, as the year-on-year inflation rate dropped for the...

Recommended

Trial Adu-Boahene

Full trial of Adu-Boahene, 3 others start on July 18

July 3, 2025
Next-Gen final 5G

Govt gives Next-Gen final deadline to roll out 5G service

July 3, 2025
Ghana Eurobond debt

Ghana services $349.52m Eurobond debt

July 3, 2025

Popular Story

  • Causes death men

    10 of top 11 causes of death killing more men in Ghana

    690 shares
    Share 276 Tweet 173
  • Bissue floors High Court and OSP at Supreme Court

    686 shares
    Share 274 Tweet 172
  • Monday, May 26, 2025 Newspaper Headlines

    664 shares
    Share 266 Tweet 166
  • Tuesday, June 10, 2025 Newspaper Headlines

    657 shares
    Share 263 Tweet 164
  • Monday, June 9, 2025 Newspaper Headlines

    638 shares
    Share 255 Tweet 160
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About NewsCenta
  • Contact Us
  • Privacy Policy
  • Terms of Use

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion

© 2025 All Rights Reserved NewsCenta.

Connect with us