Executive Director of the Green Tax Youth Africa, Nii Addo, is kicking against the government’s proposal to impose a GH₵1 tax on every litre of fuel purchased at the pump.

On Tuesday, June 3, 2025, Parliament passed the Energy Sector Amendment Bill, submitted under a certificate of urgency, to impose fresh taxes on all petroleum products.

The government argues the new levy is necessary to procure fuel for electricity generation and clear the US$3.1 billion energy sector debt as of the end of March 2025.

Describing the new levy as “regressive”, Nii Addo said the tax will compound the woes of ordinary Ghanaians especially as the road tolls are expected to kick in.

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“This is not in the right direction. There is the need for the government to have a long-term approach to some of these things. The toll is yet to start and should it be implemented, consumers will be made to pay more,” he noted.

He expects the government to rather look at alternative revenue sources in the energy sector to absorb the staggering debts.

Mr. Addo says the government could peg royalties received from companies in the extractive industries based on their capacity of production.

“The government should channel its interest to tax companies in the extractive sector based on the level of production, so that if it’s more, you pay more,” he said.

Mr Addo also disagrees with the government’s initiative to allow foreign companies to enjoy specified tax exemptions, as he argues the companies pay up levies on exported goods and profits in their country of origin.

He explained that the situation is denying the country its due revenue.

“We have to look at the Tax Exemption Act to ensure these tax exemptions enjoyed by the companies are reduced. We must reconcile these arrangements to ensure there is a fair share of the profits,” he said.

Meanwhile, reactions are mixed among motorists and commuters in the Ashanti region over the introduction of the new levy.