From E-Levy to Fuel Hike: NDC’s Tax Swap Hits Ghanaians Harder

The National Democratic Congress (NDC) government, which rode to power on the back of a popular promise to abolish the Electronic Transfer Levy (E-Levy), now faces mounting criticism over what many are calling a calculated political bait-and-switch.

Though the E-Levy has been repealed, its replacement—a GH¢1 tax on every litre of petroleum products—has sparked outrage, with critics warning it will impose an even heavier financial burden on ordinary Ghanaians.

A Tax Swapped, Not Removed

The E-Levy, introduced by the previous administration, generated GH¢612 million in 2022, GH¢1.19 billion in 2023, and GH¢2 billion in 2024. It was abolished on April 2, 2025, a move widely seen as a fulfillment of the NDC’s promise and a win for the public.

But within weeks, the government introduced the Energy Sector Levy (Amendment) Bill, 2025, imposing a new GH¢1 charge on every litre of fuel.

The levy, according to the government, is intended to address the country’s ballooning energy sector debt, currently pegged at US$3.1 billion, and to stabilize power supply. However, the move is being viewed not as relief, but as a rebranding of hardship.

The New ‘Dumsor Levy’ and Its Broader Impact

Unlike the E-Levy—which critics say citizens could partially avoid by limiting mobile money usage—the fuel tax is unavoidable. Fuel is central to nearly every economic activity, and its increased cost will inevitably have cascading effects:

• Transportation Costs: Public transport fares and delivery charges are expected to rise.

• Food Prices: Higher fuel prices mean more expensive logistics, which will push up food costs.

• General Inflation: Nearly every good or service in Ghana depends on energy or transport. The knock-on effect will be felt across the board.

A Bigger Bite Than the E-Levy

Financially, the new levy far outweighs its predecessor. Government projections estimate that the GH¢1 fuel tax will rake in GH¢5.7 billion annually—almost triple the E-Levy’s peak revenue. When combined with existing energy-related taxes (which generated GH¢6.7 billion in 2022), the burden becomes even more significant.

This raises a pressing question: Has the government simply replaced one unpopular tax with a more lucrative—and painful—alternative?

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Broken Promises and Trust Deficit

The NDC’s campaign heavily criticized the E-Levy as regressive and burdensome, vowing to eliminate it in the interest of ordinary Ghanaians. Today, many are questioning whether that opposition was a genuine policy stance or political theatre.

By removing the E-Levy only to introduce a broader, less avoidable tax, the government risks losing the trust of the very electorate that empowered it. The contradiction between campaign promises and governance realities has sparked accusations of betrayal.

Demand for Transparency

Analysts and civil society organisations are now demanding clear, accountable use of the funds raised from the new levy. With such a massive revenue injection, the government must demonstrate that the funds will directly address energy challenges—not disappear into administrative inefficiencies or mismanagement. The call is clear: Ghanaians deserve genuine relief, not a reshuffled burden dressed as reform.