Audio By Carbonatix
The Member of Parliament for Ofoase Ayirebi and Ranking Member on Parliament’s Committee of Economy and Development, Kojo Oppong Nkrumah, has called on the government to go beyond merely suspending the controversial 8% ‘Dumsor’ levy and scrap it entirely.
Speaking in response to the government’s recent decision to halt implementation of the energy sector levy, (aka dumsor levy) Mr. Oppong Nkrumah argued that the move exposes deeper flaws in Ghana’s fiscal planning.
He said the suspension confirms what the Minority had warned from the outset—that the levy would raise fuel prices and was premised on flawed assumptions about global oil price stability.
“We are asking that government should scrap it altogether because the government doesn't really need this levy.”
The levy, intended to raise GH¢5.7 billion to support energy sector interventions, drew strong criticism from the public, industry players, and the Minority, which questioned its timing and necessity.
According to Mr. Oppong Nkrumah, the real issue lies not in revenue generation alone but in the government’s broader fiscal strategy.
He pointed to an earlier projection by the Minority that the removal of selected taxes without corresponding expenditure cuts would create a GH¢6 billion hole in the 2025 budget—an estimate that closely mirrors the GH¢5.7 billion shortfall the levy sought to fill.
“Let me give you some history. In 2017, the NPP administration removed about 17 taxes, and we lost the revenues from them. We tried to close the gap, but because we could not conclusively do it, our buffers were limited. So when global shocks hit, we were left at the losing end.
“And that's why we're saying to our friends in government, do not repeat this mistake. We should use this period as a period not for blame or praise, but a period to conduct a comprehensive and transparent review of the revenue lines as a country with the view to developing sustainable, reliable fiscal resilience.”
Mr. Oppong Nkrumah stressed that the government must seize the opportunity to initiate a comprehensive evaluation of the efficiency and equity of the country’s revenue mobilisation mechanisms, emphasising the need for a transparent, sustainable, and citizen-sensitive approach to public finance that enhances Ghana’s long-term fiscal resilience.
“This is not just about scrapping a levy. It’s about building a revenue system that is agile, fair, and capable of delivering tangible results for the Ghanaian people,” he said.
“We on the minority side will support any such effort with the lessons we have learned, with the ideas and our suggestions. Ghana doesn't need just the scrapping of these levies. Ghana needs levies that are sustainable, that make sense and that deliver results for her people.
“And we on the Minority, will do our best to contribute to those ideas,” he said.
Latest Stories
-
MGL’s May Day Egg market ends in resounding success as crowds turn out for affordable eggs
20 minutes -
Energy expert advocates increased private-sector role in power distribution to tackle dumsor
25 minutes -
Tony Asare Writes: A clotted artery, by-passes and detours
29 minutes -
No road project cancelled under Mahama’s reset agenda — Roads Minister
35 minutes -
Mahama praises IGP Yohunu, hails intelligence-led policing at Krobo-Odumase commissioning
36 minutes -
“Energy situation is stable” – John Jinapor assures Ghanaians
38 minutes -
Ghana Tuna Association reaffirms sustainability commitment on World Tuna Day
41 minutes -
Mahama commissions Odumase Krobo Divisional Police HQ, boosts operations with vehicles
1 hour -
Roads Minister urges contractors to stay on site, assures prioritised payments
1 hour -
Suhuyini credits Ameri plant for averting 2024 power crisis in Kumasi
1 hour -
Thirteen killed in Israeli strikes on southern Lebanon, health ministry says
2 hours -
Tano North MP sounds alarm over galamsey devastation, accuses officials of shielding perpetrators
2 hours -
Digital wealth, analog poverty: Why technology isn’t closing the gap
2 hours -
World Relays: Ghana miss automatic qualification after finishing 4th in heat
2 hours -
NACOC disrupts suspected drug network in Winneba ahead of Aboakyiri Festival
2 hours