The Minister of Finance, Dr Cassiel Ato Forson, has come under intense scrutiny from a faction of the public following the passage of the Energy Sector Levy (Amendment) Bill, 2025, which imposes a GH¢1 levy on every litre of fuel purchased.

The finance minister, while laying the bill in Parliament on Tuesday, May 3, 2025, explained that the levy will help generate additional revenue to pay off the country's chronic energy sector debt and ensure a stable supply of electricity.

Many of the minister's critics are pointing to his past remarks on there being no need to increase taxes, given Ghana's revenue mobilisation potential.

Speaking during his vetting by the Appointments Committee of Parliament on Monday, January 13, 2025, Dr Ato Forson noted that compliance with tax payments is what is needed, and not an increase in taxes.

He promised to raise the tax revenue-to-GDP ratio from 13.8% to 16% if approved.

"I have studied Ghana's economy for some time now, and without mincing words, Ghana has potential when it comes to tax revenue mobilisation. We don't necessarily have to increase taxes before we can generate revenue. We have the means; what we need to do is improve compliance.

"In the medium term, it is my vision, if approved, to increase the tax revenue from 13.8% of GDP to 16%–18%. By doing this, we will be able to compare ourselves to our peers. I believe the potential is there, but it doesn't necessarily mean we should increase taxes," Dr Cassiel Ato Forson said.

He again stated, at the National Economic Dialogue, that Ghanaians should not be forced to pay for the inefficiencies of the Electricity Company of Ghana (ECG) with the introduction of taxes.

“... I still maintain that tariffs should not be used to reward ECG’s inefficiencies and other inefficiencies in the system,” the finance minister said.

Watch a video of his remarks below:



BAI/AE