The Deputy Ranking Member on Parliament's Finance Committee and Member of Parliament for Tano North, Dr Gideon Boako, has criticised the government's decision to extend the Energy Sector Recovery Levy to fuel oil, arguing that authorities should prioritise tackling smuggling and non-compliance instead of imposing additional taxes.

Speaking in Parliament on Friday, July 31, during deliberations on the extension of the levy, Dr Boako questioned the rationale behind the proposal, stating that the government had already introduced a GH¢1 per litre Energy Sector Recovery Levy last year to repay debts in the energy sector.

According to him, the World Bank had indicated that although the levy was collected, the government failed to use the proceeds to settle the debts as intended. He argued that citing fuel smuggling and tax non-compliance as justification for extending the levy raised concerns about the government's approach to revenue mobilisation.

“Last year, the NDC government introduced the GH¢1 per litre Energy Sector Recovery Levy to repay energy sector debts. Yet, according to the World Bank, although the levy was collected, government failed to pay the debt as indicated. Today, the Finance Minister returned to Parliament seeking to extend the levy to fuel oil, citing smuggling and non-compliance. But shouldn’t smuggling and non-compliance be addressed through stronger enforcement rather than higher taxes?” Dr Boako asked.

The Tano North MP further accused the government of placing an increasing financial burden on Ghanaians through new taxes, arguing that its overwhelming majority in Parliament was being used to push through measures without adequate regard for opposing views.

“It seems this government fancies burdening the Ghanaian taxpayer with more taxes. The supermajority Ghanaians gave them is being abused. No matter what the Minority says, they don't care. Ghana should never make the mistake of giving one political party such a supermajority in Parliament,” he stated.