Minority demands repeal of ‘Dumsor Levy’ after government’s u-turn

The Minority Caucus in Parliament has launched an attack on the NDC government following the Ghana Revenue Authority’s decision to indefinitely postpone the implementation of the controversial Energy Sector Levies (Amendment) Act, 2025, popularly known as the Dumsor Levy.

In a three-page statement signed by Minority Leader Alexander Afenyo-Markin, the caucus described the government’s move as a shameful retreat that exposes its “fundamental incompetence and hypocrisy.”

The levy, which was initially scheduled to take effect on June 16, 2025, aimed to raise funds through taxes on petroleum products to repay energy sector debt.

The Minority condemned the last-minute suspension, arguing that it highlights the government’s “chaotic and fundamentally inconsistent approach to economic governance.”

They criticized the government for adopting the same justification, external shocks such as crude oil price volatility that they had dismissed when used by the previous NPP administration under President Akufo-Addo.

“The very government that castigated President Akufo-Addo for attributing economic hardship to the COVID-19 pandemic and the Russia-Ukraine war is now using the Middle East crisis as an excuse to justify postponement,” the statement said.

The caucus further accused the government of poor planning and a lack of stakeholder engagement, calling the initial rollout of the levy “trial-and-error governance.” They warned that implementing additional fuel taxes during a time of high cost-of-living pressures was both economically unwise and socially insensitive.

Reiterating their long-standing opposition to the bill, the Minority demanded its complete repeal.

They urged the government to immediately table a repeal bill under a certificate of urgency, insisting that Ghanaians deserve better governance than one that imposes punitive taxes and retreats only after facing public outrage.

They also challenged the justification for the levy, which the government claimed was necessary to service energy sector debt. Comparing the current administration to its predecessor, they asserted that the Akufo-Addo government managed to ensure stable power without introducing such levies, thanks to prudent fiscal oversight and effective management.

The Minority rejected any attempt to blame them for the energy sector’s woes, stating that the crisis was entirely the result of the current administration’s “incompetence.” They warned that worsening power conditions must be attributed to the government’s mismanagement, not to the absence of new levies.

The statement also called for urgent reforms at the Electricity Company of Ghana (ECG), citing widespread inefficiencies, illegal connections, and malfunctioning metering systems. It decried the state of affairs where prepaid meters operate without proper regulation, causing significant revenue losses.

The Caucus demanded that the Minister for Energy and Green Transition present to Parliament all policy documents related to the Loss Reduction Programme, which they say has stalled despite existing contractual and technical capacity to proceed.

The Minority pledged to resist any future attempts to impose fiscal burdens on Ghanaians and called on all citizens to join them in demanding the total withdrawal of the Dumsor Levy.

They insisted that Parliament be convened urgently to repeal the legislation, warning that any partial response would be “unacceptable to both the Minority and the people of Ghana.”

Read the full statement below: