Economist and Professor of Finance at the University of Ghana, Godfred Bokpin, has explained that there is a significant difference between the E-levy and the newly introduced energy levy.
He argued that, considering the government’s strategy to develop the digital economy, which is expected to grow faster than the traditional economy, the future is increasingly digital, and Ghana needs to create the right environment to support that growth.
“The NDC government, after campaigning against the E-levy and eventually scrapping it, views the E-levy as a misplaced priority. That view has not changed. The E-levy and the energy levy are completely different.
“The impact of introducing the E-levy would have harmed the future of the digital economy far more than this new levy will, even though both have value chain effects,” he said in an interview on Asempa FM’s Ekosii Sen show.
He stressed the need for fiscal discipline at this time and welcomed the removal of the E-levy to allow the digital economy to thrive without additional burdens.
“Given the current circumstances, including the recent strengthening of the cedi, one could make a case for this as a temporary intervention. What Ghanaians needed at that time was more fiscal discipline,” he added.
Prof. Bokpin acknowledged that the introduction of the energy levy is not an optimal solution but said it could provide some temporary relief.
“Considering the challenges in the energy sector and the broader impact on the economy, this levy targets the value chain and could bring some relief. It’s a difficult decision, but some interventions have helped stabilize the situation.”
He reiterated that his earlier concerns about the E-levy remain unchanged despite the introduction of the new levy.
“My argument during the introduction of the E-levy hasn’t changed with the introduction of this levy.”
His comments follow the passage of the Energy Sector Levies (Amendment) Bill, 2025, which authorizes a GH¢1 increase in petroleum product levies.
According to Finance Minister Dr. Cassiel Ato Forson, the measure aims to help settle $3.1 billion in energy sector arrears and raise an additional $1.2 billion to procure fuel for thermal generation in 2025.
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