By Morkporkpor Anku
Accra, June 5, GNA – Mr Mark Aboagye, Chief Executive Ofiicer of the Ghana National Chamber of Commerce and Industry (GNCCI), has called on the government to engage the private sector when introducing new taxes and policies.
He said as a Chamber and business association, he expected that anytime the government intended to introduce levies and taxes, members should be engaged to provide some recommendations.
Mr Aboagye in an interview with the Ghana News Agency on the current introduction of the “one cedi per litre” tax on fuel purchases said it came to them as a surprise.
The bill, submitted under a certificate of urgency, will impose fresh taxes on all petroleum products, which the Finance Minister said was necessary to clear an alarming US$3.1 billion energy debt as of the end of March 2025.
The bill passed on June 3, 2025, intended to raise additional revenue to address the nation’s crippling energy sector debt and ensure stable power supply.
The Minister explained that a minimum of US$3.7 billion is required to fully clear this debt, with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.
He said it was very difficult getting the buy-in from the people and it should not be like that, adding that “it always puts tension between the government and the private sector as if we are not supporting.”
Mr Aboagye said if the government had engaged them, they would have known what was coming and offered their recommendations.
He said, “For me, I think the intended purpose is very relevant but because the idea is that they are going to support the energy sector and we all know the debt within the energy sector that we have to pay.”
The CEO was of the view that the issues with the policy were with the timing and the rate as well.
He said it also brought to mind the efficiency of the Electricity Company of Ghana (ECG) and “We cannot continue to pay for the inefficiency of ECG. We have ESLA and all those levies trying to support the energy sector.”
Meanwhile, the Africa Sustainable Energy Centre (ASEC) has urged the government to focus its attention on long-term, sustainable solutions rather than short-term revenue measures.
In a statement issued by Justice Ohene-Akoto, Executive Director, ASEC said there was the need to weed out the bad nut from the system, or else all efforts of the government would be sabotaged.
It said the move was a short-sighted measure that targeted citizens rather than addressing structural weaknesses in the energy sector.
The statement said the increase in levy joined the existing taxes on fuel prices, including the Energy Sector Recovery Levy (20pesewas/litre).
It said the proposed tax, intended to support the struggling energy sector, risked placing an additional financial burden on Ghanaians already contending with economic hardship.
“If implemented, the measure will have long-term implications on inflation, transportation, commodity prices, and the overall cost of living. Fuel is a cornerstone of Ghana’s economy,” it said.
It said from agriculture and transportation to food distribution, the cost of fuel drives the price of nearly every essential good and service and the new levy would increase this burden without delivering any solution to the core issues affecting the sector.
ASEC maintained that inefficiencies within the Electricity Company of Ghana (ECG) remained the root cause of the crisis.
These include outdated infrastructure, poor and inconsistent revenue collection, illegal power connections, technical and administrative losses
It said before introducing new taxes, “we must ask: why are we failing to collect what is already due?”
ASEC called on the government to focus on transparency, digital reforms, and operational efficiency instead of shifting the cost of systemic failures to consumers.
It also questioned the use of existing energy-related levies, particularly the Energy Sector Recovery Levy.
These funds, often re-allocated to other infrastructure projects, should be used for their intended purpose stabilising the energy sector.
It said the government must ensure proper appropriation and oversight of existing energy funds.
“Misapplication not only dilutes their impact but also erodes public trust,” it added.
It said introducing a new fuel levy, in the absence of reforms, only rewarded inefficiency and delayed the much-needed transformation of the sector.
The statement said Ghana’s energy sector was currently accumulating an estimated $70 million in monthly liabilities and without decisive reforms, these debts will continue to mount.
It called for a full-scale operational reform of ECG, an investment in smart metering and digital infrastructure, strengthening regulatory oversight, eliminating technical and commercial losses and accountability for funds already collected.
GNA
Christian Akorlie