Despite Aversion Against Taxes, 55% of Ghanaians Back GHC 1 Energy Sector Levy – InfoAnalytics Survey

In a surprising twist that defies conventional knowledge about taxes, the majority of Ghanaians say they support the GHC 1 per litre Energy Sector Levy.

This was revealed through a new survey by the Global InfoAnalytics,  signaling a shift in public endorsement of the tax despite the anticipated hardship it could bring.

The poll, released ahead of Ghana’s mid-year budget review, shows that 55% of voters endorse the energy levy, despite the country’s historical aversion to new or increased taxation.

Just 22% of the respondents of the survey opposed the levy, while 23% remained neutral.

The GHC 1 per litre levy, the government says, will be used to address the challenges in the country’s energy sector. The sector, which is highly indebted to the tune of about $3.6 billion, threatens the stability and resilience of the country’s energy sector.

The Minister for Finance says the proceeds will be used to pay off the huge legacy debts, while President Mahama has committed to ringfencing the revenues to protect them from misapplication and misappropriation.

Although the levy was suspended at the outset of the Iran-Israeli crisis, for fear of possible disruption in global crude prices, the implementation is finally set to begin on July 16.

The high approval ratings of the levy could mean many Ghanaians support the objective of the government and hence the minimal public backlash and protests.

Traditionally, Ghanaians have been deeply skeptical of taxes, often associating them with waste, corruption, or inefficiency. The idea that the general public would rally behind a tax on fuel, arguably one of the most sensitive commodities in the economy, is highly notable.

Adding to the irony is another standout finding in the same survey: 59% of Ghanaians say their standard of living has improved compared to this time last year. Only 12% believe it has worsened, while 25% say it has remained the same, and 11% are undecided.

This provides a sense of tangible improvement in living standards that could fuel a more open-minded approach and support for the government’s policies.

Many governments in Africa are facing tax revolts and public distrust; however, Ghana appears to be enjoying support for the Energy Sector Levy, offering a rare insight into a changing political economy, one where citizens may be willing to carry the load if the government carries its end of the bargain.

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