Ghana Parliament passes energy levies bill amid heated debate

Ghana's Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026, a move that aims to increase levies on fuel oil and reform the government's fuel subsidy program. The amendment targets significant leakages and abuses within the existing subsidy system, particularly those intended to support industries.

The bill introduces a shift from an upfront subsidy payment (ex-ante) to a post-payment system (ex-post). According to Finance Minister Dr. Cassiel Ato Baah Forson, this change will help address a potential revenue loss of $25 million over six months, attributed to individuals misclassifying diesel as fuel oil. "The government is not imposing any tax," Dr. Forson explained. "What the government is seeking to do is to convert the subsidy from an-ex anti subsidy to ex-post subsidy."

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Mr Speaker, the government is not imposing any tax. Mr Speaker, what the government is seeking to do is to convert the subsidy from an-ex anti subsidy to ex-post subsidy.

The passage followed a contentious debate between the Majority and Minority caucuses. The Minority described the bill as the introduction of new taxes, a claim vehemently dismissed by the Majority. Dr. John Abdulai Jinapor, Minister of Energy and Green Transition, and Dr. Gideon Boako, MP for Tano North, were among those who argued for stricter enforcement of existing laws rather than increasing levies. Dr. Boako suggested focusing on compliance to address leakages, warning that higher levies could increase operational costs for industries and be passed on to consumers.

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Mr Speaker, if the objective of this bill is to strengthen tax compliance, why are we not focused on enforcement but rather imposing another tax on the people of this country knowing the path of taxation does not address the enforcement deficit.