No amount of taxes will solve Ghana’s energy problems until…- Bentil

Vice President of IMANI Africa, Kofi Bentil, has said that the challenges in Ghana’s energy sector are due to ineptitude and corruption.

He believes that no amount of taxes can solve the challenges until technically competent people are put in place to address the matter.

Reacting to the new fuel levy that has been introduced by the Mahama administration, Mr Bentil, also a private legal practitioner, wrote on his Facebook page that “The problem in our energy sector is ineptitude complicated by corruption.

“Until we stop putting politicians in charge and allow technically competent people to solve the problem, no amount of taxes will solve it.”

The Mahama administration has been receiving flak for introducing the fuel levy at a time when it promised not to burden Ghanaians with taxes.

An economic analyst, John Kusi Narh, states that Ghanaians bought into the promise of the National Democratic Congress (NDC) to burden them with taxes. Therefore, the fuel levy breaches that trust.

It is recalled that during his vetting on January 13, the Finance  Minister, Dr. Cassiel Ato Forson, expressed the view that there was no need to increase taxes given the country’s substantial potential in revenue mobilisation.

“I have studied Ghana’s economy for some time now, and without mincing words, Ghana has potential when it comes to tax revenue mobilisation. We don’t necessarily have to increase taxes before you rake in revenue. We have the handles; what we need to do is to improve compliance.”

Speaking exclusively to editors.3news.com on the fuel levy that has just been passed by parliament, Mr Narh said, “Why do you break the trust of the people like this? You gave your word to the people not to increase new taxes, only for you to turn around within a few months to slap them with this new levy on fuel.”

President John Dramani Mahama has defended the government’s decision to impose a new GHS1 fuel levy, describing it as a “difficult but necessary” measure to rescue Ghana’s heavily indebted energy sector and prevent further power crises.

Speaking at the Jubilee House on Wednesday, June 4, during the presentation of the final report of the National Economic Dialogue 2025, President Mahama acknowledged public concerns over the levy but stressed that the move is essential for securing the country’s energy future.

“This decision, though difficult, is necessary and justifiable,” the President stated. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”

“If left unaddressed, this situation significantly threatens national productivity and industrial growth,” he warned.

The levy was passed by Parliament on Tuesday as part of the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency.

It imposes a GHS1 tax on every litre of fuel sold in the country.

President Mahama said the measure follows recommendations from the National Dialogue to take bold action to solve the long-standing energy crisis.

He assured that the estimated GHS5.7 billion in annual revenue from the levy will be ring-fenced and not lodged in the Consolidated Fund.

“Funds from this levy will not be subject to the hazards of the consolidated fund,” Mahama said. “They will be regularly audited, with reports made public to ensure transparent use.”

Read Also: ECG owes GHS 67 billion as of March 2025 – Energy Minister Jinapor

President Mahama concluded by urging Ghanaians to support the policy as a responsible and forward-looking solution to one of the country’s most urgent challenges.