Minority Slams Suspension of Dumsor Levy as ‘Chaotic’ and Demands Full Repeal

The Minority Caucus in Parliament criticizes the government's suspension of the controversial "Dumsor Levy," accusing the administration of economic mismanagement and hypocrisy over policy inconsistencies.

Minority Slams Suspension of Dumsor Levy as ‘Chaotic’ and Demands Full Repeal
The Minority Caucus in Ghana’s Parliament

ACCRA, GHANA – The Minority Caucus in Ghana’s Parliament has issued a scathing critique of the government’s sudden decision to suspend the controversial Energy Sector Levies (Amendment) Act, 2025, popularly known as the "Dumsor Levy." The Ghana Revenue Authority (GRA) announced the indefinite suspension of the levy, which was due to take effect on Monday, 16 June 2025, just a day before its planned rollout.

In a statement released on Sunday, 15 June, the Minority described the government’s move as "chaotic and inconsistent," accusing the administration of economic mismanagement and a lack of proper consultation before passing the law. They expressed strong disapproval of the eleventh-hour decision, claiming it exposed a "trial-and-error strategy" and revealed the government's failure to engage stakeholders effectively prior to the passage of the levy.

"This eleventh-hour U-turn epitomises a trial-and-error strategy and reveals a disturbing lack of stakeholder engagement before the passage of the law," the Minority’s statement read.

The government has cited rising global crude oil prices due to escalating tensions between Israel and Iran as the reason for suspending the levy. However, the Minority rejected this explanation, accusing the administration of hypocrisy for blaming global events after criticizing the previous government for doing the same.

"It is dishonest and hypocritical for this government to now hide behind international developments to excuse policy inconsistencies," the statement continued.

Levy Called “Terrible Idea” Amid Economic Hardship

The Minority further criticized the Dumsor Levy as “a terrible idea from the onset,” warning that any attempt to reintroduce the tax would be met with fierce resistance. They argued that, given the high cost of living in Ghana, any additional fuel tax would be "economically reckless and morally indefensible."

At a time when Ghanaians are reeling under the weight of a high cost of living, any additional fuel tax is economically reckless and morally indefensible,” the Minority added.

The caucus emphasized that the energy sector’s instability was due to poor management and not the absence of the Dumsor Levy. They pointed to inefficiencies within the Electricity Company of Ghana (ECG), poor metering systems, and the collapse of the Loss Reduction Programme as the key causes of Ghana’s energy woes.

"The notion that Ghana’s energy woes are due to the absence of this levy is categorically rejected. They are the product of poor leadership and mismanagement," the statement declared.

Call for Repeal and Resistance to “Regressive” Taxes

In its conclusion, the Minority Caucus called for the immediate reconvening of Parliament to repeal the levy entirely. They reminded the government of its campaign promise to reduce economic burdens, not increase them, and pledged to oppose any fiscal policies that would exacerbate the suffering of Ghanaians.

“We will resist any regressive fiscal policies that deepen the suffering of the Ghanaian people,” the Minority statement concluded.

The government now faces increasing pressure to clarify its policy direction and rebuild trust in its economic governance, as growing criticism over the handling of the levy continues to mount.