¢1 Energy Levy: An Opportunity for Ghanaians to Demand Accountability on Use of Other Fuel Levies – IMANI

Amid the unclear fate of the GH¢ 1 per litre energy sector levy, policy think tank IMANI Africa has called on Ghanaians to seize the moment to demand accountability and transparency in the use of existing fuel levies.

IMANI is of the view that while the new levy, although suspended for now, aims to raise revenue to address the mounting debts in the energy sector, it should not come at the cost of blind trust from taxpayers.

The public policy think tank, in its latest Critical Analysis of Key Economic Policies, cited long-standing concerns about the usage and transparency issues with already existing fuel levies such as the Sanitation and Pollution Levy and the Public Lighting Levy, which are components of the Energy Sector Levies Act (ESLA).

The levies and others, just like the new levy, IMANI argues, were introduced with clear public service objectives. However, the think tank notes that persistent urban sanitation issues and poorly lit streets across the country raise troubling questions about whether the funds are being used as intended.

According to IMANI, the issue is no longer just about raising more money, but whether government agencies are complying with the legal mandates governing these levies.

For IMANI, the government must account for how much these other levies have accrued over the years and the projects those revenues have been used to undertake, according to the objectives for their establishment.

“The introduction of this levy should trigger critical conversations about transparency and the effective use of these funds. There are components of the ESLA levies, such as the Sanitation and Pollution Levy and the Public Lighting Levy, that were designed with specific service delivery objectives in mind. Yet, persistent sanitation challenges in urban centres and poorly lit streets raise concerns about whether these levies are being used for their intended purposes,” the report remarked.

To garner public support now that a new levy is scheduled to be introduced for consumers to bear additional costs on petroleum products, IMANI maintains it is only fair for the government to account for the old levies.

“As the government calls on consumers to bear more of the cost of energy sector clean-up, it is only fair to demand that public agencies show greater transparency in how existing levies are managed. The conversation should focus on whether collected levies are being properly lodged and disbursed in accordance with the law and evidence that these earmarked revenues are translating into improved public services,” IMANI demanded.

The new GH₵1 levy has been temporarily suspended due to geopolitical risks and rising crude prices. IMANI believes this is the perfect time for the public and civil society to scrutinise how existing levies are being handled.

The think tank’s call echoes widespread public scepticism about the effectiveness of revenue collection in addressing the very challenges the taxes are meant to solve. It also aligns with growing calls from industry experts and civic groups for reforms in fiscal governance and public financial management.

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