A lecturer at Kumasi Technical University, Dr. Ishaq Kyei Brobbey, has stated that the recently introduced Dumsor Levy of 1 Cedi on per litre of fuel, will not solve Ghana’s power challenges.
Speaking on Wontumi’s morning show, Dr. Brobbey revealed that the levy is primarily aimed at meeting revenue targets, particularly since the NDC government couldn’t hit its targets in 2025.
Dr. Brobbey explained that several factors are contributing to Ghana’s economic challenges. The appreciation of the Ghanaian cedi has led to a decrease in gold exports. Additionally, import charges previously calculated in dollars have been decreased. The government has also faced challenges with taxes amounting to around 5 billion cedis, including a 2% growth and sustainability levy, a 1% special import levy, and recent additions to Value Added Tax (VAT).
Dr. Brobbey emphasized that the government’s inability to meet revenue targets while under an IMF program will lead to trouble. The introduction of the Dumsor Levy, he believes, is a result of this revenue shortfall.