Gideon Boako questions extension of Energy Sector Recovery Levy, urges stronger enforcement against fuel smuggling

The Deputy Ranking Member on Parliament’s Finance Committee and Member of Parliament for Tano North, Dr Gideon Boako, has accused the government of imposing an increasing tax burden on Ghanaians, arguing that recent fiscal measures demonstrate a preference for raising taxes instead of addressing inefficiencies in revenue collection. Speaking in Parliament on Friday, July 31, during deliberations on the extension of the Energy Sector Recovery Levy to fuel oil, Dr Boako questioned the government’s justification for the proposal. He argued that issues such as fuel smuggling and tax non-compliance should be addressed through stronger enforcement rather than by extending existing levies.

According to him, the government introduced the GH¢1 per litre Energy Sector Recovery Levy last year to repay debts in the energy sector, yet the intended objective had not been achieved. He maintained that the government should account for the use of the levy before seeking to widen its application. “It seems this government fancies burdening the Ghanaian taxpayer with more taxes.

The supermajority Ghanaians gave them is being abused. No matter what the Minority says, they don’t care,” Dr Boako said. He further cautioned Ghanaians against giving any political party an overwhelming majority in Parliament, arguing that such dominance weakens parliamentary oversight and allows governments to push through policies without sufficient scrutiny.

“Ghana should never make that mistake of giving one political party such a supermajority in Parliament,” he added. Speaking in Parliament on Friday, July 31, Dr Boako recalled that the government introduced the GH¢1 per litre levy last year to address mounting debts in the energy sector. However, he claimed the objective had not been achieved despite the revenue generated from the levy.

According to him, findings by the World Bank indicate that although the levy was collected, the government did not apply the funds towards repaying the debts for which the tax was introduced. “Last year, the NDC government introduced the GH¢1 per litre Energy Sector Recovery Levy to repay energy sector debts. Yet, according to the World Bank, although the levy was collected, government failed to pay the debt as indicated,” he said.

Dr Boako maintained that the development raises concerns about the management of public funds and called on the government to account for how the revenue from the levy has been utilised before introducing additional tax measures. According to him, the World Bank had indicated that although the levy was collected, the government failed to use the proceeds to settle the debts as intended. He argued that citing fuel smuggling and tax non-compliance as justification for extending the levy raised concerns about the government’s approach to revenue mobilisation.