’Dumsor’ Levy 8 Times E-Levy – Bawumia

Dr. Mahamudu Bawumia

 

FORMER VICE PRESIDENT, Dr. Mahamudu Bawumia, has exposed the level of hypocrisy among members of the ruling National Democratic Congress (NDC), following the introduction of the new petroleum levy aimed at resolving the country’s mounting energy sector debts.

Addressing delegates during his ‘Thank You Tour’ at Twifo Praso in the Central Region, Dr. Bawumia said he is alarmed by the government’s introduction of a levy, considering the dissatisfaction they expressed towards the introduction of the Electronic Transaction Levy (E-Levy) during the New Patriotic Party (NPP) government’s tenure when in opposition.

“During our time and government when they were in opposition, the NDC lied and spoke a whole lot against the E-Levy we introduced, which was not even true. But today these same people have abolished the levy we introduced and have introduced a different one which is even eight times higher than what we even introduced,” he said.

Dr. Bawumia explained that with the introduction of the ‘Dumsor Levy’, 1 litre of fuel will attract a GH¢1 levy, while purchasing GH¢1,000 worth of fuel means a driver stands a chance of paying GH¢83 in new taxes, describing it as “outrageous”.

“Today, if you purchase a litre of petrol you will pay GH¢1 as a levy; if you purchase GH¢1,000 of petrol, you will pay GH¢83. Looking at how things are rolling, I foresee more levies to be introduced in the coming years,” he added.

Dr. Bawumia’s comments follow observations by the Minority Leader, Alexander Afenyo-Markin, who has accused the government of reintroducing a version of the repealed E-Levy under a different name.

“You said in your budget that you wouldn’t introduce new taxes. You repealed the E-Levy, and now you reintroduce it under the guise of an Energy Sector Levy and want to rush it through under a certificate of urgency,” Mr. Afenyo-Markin argued during the presentation of the Energy Sector Levy (Amendment) Bill in Parliament.

The Minority Leader further challenged the Finance Minister’s approach, accusing him of sidestepping procedural norms and misleading the public by suggesting the levy would have no financial impact.

“What is the Energy Sector Levy, in short form? E-Levy. Energy starts with ‘E’. The Hansard is watching, and one day, this precedent will come back to haunt you,” he added.

On Tuesday evening, the government introduced a new petroleum levy when Finance Minister Dr. Cassiel Ato Forson, presented the Energy Sector Levy (Amendment) Bill in Parliament.

He said the new measure would raise additional revenue to pay off legacy energy sector debts and fund critical fuel procurement for thermal power generation.

“The object of this bill is to raise additional revenue to support the payment of energy sector shortfalls, reduce legacy debt and stabilise power supply,” the minister told the House and added, “The power sector is the biggest economic and fiscal risk we face presently. It could lead to a major crisis if we fail to confront it head-on.”

The Finance Minister revealed that the country’s energy sector debt stood at US$3.1 billion as of March 2025. This figure includes amounts owed to independent power producers, fuel suppliers, and state-owned enterprises. Due to non-payment of bills, key financial guarantees, including a US$512 million World Bank IDA guarantee and a US$120 million GMPC guarantee, were fully drawn down in 2024.

 

BY Prince Fiifi Yorke

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