E-Levy Was Preferable To The New Petroleum Levy

During an appearance on Peace FM’s “Kokrokoo” morning show on June 5, 2025, political analyst and former PNC General Secretary Atik Mohammed stated that he preferred the now-abolished Electronic Transaction Levy (E-Levy) over the recently implemented GH¢1 petroleum levy.

Despite its problems, Atik maintained that the E-Levy was a less onerous and more equitable tax than the new petroleum levy.

He underlined that the design of the E-Levy gave people the ability to manage their tax payments according to how often they use electronic transactions. On the other hand, regardless of their income levels or fuel usage patterns, all consumers are subject to a uniform charge under the petroleum levy.

“By changing their electronic transaction patterns, people could reduce their tax liability under the E-Levy. But the petroleum levy is more regressive because it impacts everyone equally and does not provide this flexibility,” Mohammed said.

The Energy Sector fee (Amendment) Bill, 2025, which included the GH¢1 petroleum fee, has drawn criticism from a number of sources.

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This fee alone is expected to yield GH¢5.7 billion, surpassing the aggregate earnings from all previously abolished taxes, putting a greater financial burden on Ghanaians, according to former Finance Minister Dr. Mohammed Amin Adam.

Atik’s comments contribute to the continuing discussion on the impact and fairness of Ghana’s tax laws, particularly in view of recent budgetary reforms meant to alleviate the nation’s economic difficulties.