Economist and senior lecturer at the University of Ghana, Dr. Adu Owusu Sarkodie, has raised concerns about the sustainability of the proposed Energy Sector Levy, popularly referred to as the “D-Levy,” under Ghana’s current economic conditions and ongoing International Monetary Fund (IMF) program.
Speaking during the sixth edition of CDS Africa’s X Space Dialogue, Dr. Sarkodie described the levy as an unsustainable solution to Ghana’s energy sector debt crisis.
The event, organized by the Africa Centre for Democracy and Socioeconomic Development (CDS Africa), featured expert panelists who critically examined the theme: “Energy Sector Levy and Energy Sector Debt: Should It Be Implemented or Repealed?”
According to Dr. Sarkodie, the IMF-supported budget already outlines steps to address the growing energy sector debt and inefficiencies through structural reforms, not additional taxes. “One of the key issues under the IMF program is to resolve energy sector debt and reform the sector to avoid further accumulation of debt,” he stated.
He questioned the rationale behind introducing a new levy, especially after the government acknowledged in its most recent budget that Ghanaians are overburdened with taxes, leading to the scrapping of certain levies such as the e-levy and the betting tax.
Dr. Sarkodie emphasised that rather than imposing another tax, reforms should focus on efficient tariff collection and revenue generation.
He argued that public institutions must be held accountable for their consumption.
