The former finance minister Mohammed Amin Adam has strongly criticised the decision by the John Mahama-led government to increase levies on petroleum products and a new tax on petrol in particular, describing it as exploitative and a betrayal of public trust.
Speaking on the floor of Parliament during a heated debate on the proposed petroleum tax increments, the former minister said the move would unjustly deprive Ghanaians of the benefits they deserve from recent economic gains, particularly the strengthening of the Ghanaian cedi.
“The government is clawing back benefits that should accrue to the people. What crime have Ghanaians committed to be denied the positive impact of a stronger cedi?” he asked.
He argued that a strengthening currency should lead naturally to a reduction in fuel prices, thereby lowering transportation and living costs. Instead, he accused the current administration of imposing new taxes that will negate these potential gains.
“The same government that once celebrated the abolition of taxes is now introducing fuel levies projected to raise GHC12.7 billion – far more than the GHC5 billion gained from all the abolished taxes combined,” Amin Adam said.
He further challenged the rationale behind the tax increases, questioning why the bill was being rushed through Parliament under a certificate of urgency.
“What has changed so dramatically that we must rush to burden the people with more taxes?” he asked. “This is not responsible governance.”
A burden lifted
The former finance minister also took issue with the government’s explanation that the new taxes are needed to address challenges in the energy sector, particularly rising fuel costs.
He pointed out that most power generation relies on gas, not liquid fuel, and disputed claims that liquid fuel prices would drive electricity tariffs up by over 50%.
“This government now has full access to all the levies collected under the ESLA programme, amounting to GHC6 billion annually. Previously, only GHC3 billion went to the government due to bond servicing. With that burden lifted, what justification is there for these additional taxes?” Amin Adam asked.
He called on Parliament to reject the legislation, set out in the Energy Sector Levies (Amendment) Bill, to restore public confidence in governance.
“When we give something with one hand and take it back with the other, Ghanaians lose trust in us. Let’s send a message that we stand with the people,” Adam urged.
After a walkout by the Minority Caucus, Parliament passed the new tax legislation late on Tuesday night (3 June).
