Parliament Sanitation Committee Chair Makes Case For Tax Increase To Fund Waste Management
- John Oti Bless, the chairman of the Sanitation and Water Resources Committee of Parliament, is in favour of a hike in the sanitation levy
- The Akufo-Addo administration imposed the 10 pesewa tax on each litre of fuel as a Sanitation and Pollution Levy
- Bless said the tax increase could help recruit manpower for the waste management space
Ghana’s top stories, now easier to find. Discover our new search feature!
The Chair of the Sanitation and Water Resources Committee of Parliament has suggested a hike in the 10-pesewa sanitation levy to 50 pesewas.
John Oti Bless, also the Nkwanta North MP, wants to dedicate the levy to waste management efforts across the country.
Source: Getty Images
Bless argued that the lack of a dedicated funding stream is hurting waste management.
On August 19, 2025, he told the press that the tax increase could help recruit manpower for the waste management space.
He added that the funds currently allocated to districts are woefully inadequate, leaving assemblies unable to tackle even basic sanitation needs.
“We then distribute this money, giving a percentage to the National Youth Employment Agency to support them in recruiting more people."
“The amount of money given to my district, for example, with a lot of sanitation issues, according to the directors, is around GH¢200,000. That is inadequate, and it cannot solve sanitation issues."
The Akufo-Addo administration imposed the 10 pesewa tax on each litre of fuel as a Sanitation and Pollution Levy. The levy came into effect in 2021.
There are 10 levies on fuel purchased by Ghanaians. The government recently increased the Energy Sector Levy to GH¢1 on every litre of fuel bought.
The government said the controversial tax increase is needed to support key procurement for power supply and is also necessary to clear the alarming $3.1 billion energy sector debt.
During debate on the amendment in Parliament, Finance Minister Cassiel Ato Forson said the amendment for the increase would raise additional revenue to fund the needs in the power sector.
The government had planned to implement the tax from June 9, but protests from the Chamber of Oil Marketing Companies prompted a postponement. It was eventually implemented on July 16.
A July of new taxes and reforms
July 1, 2025, saw a number of tax reforms take effect as part of the Mahama administration's plan to improve revenue mobilisation.
For example, the Ghana Revenue Authority rolled out the Modified Taxation Scheme to improve tax collection from informal sector workers.
The Business and Financial Times noted that the Modified Taxation Scheme is designed to make it easier for small business owners and traders who are not already registered with the Ghana Revenue Authority to pay taxes.
Source: Getty Images
Informal sector workers who earn less than GH¢ 20,000 annually will now pay a fixed quarterly tax ranging between GH¢ 25, GH¢ 35, and GH¢ 45. Those who earn between GH¢ 20,000 and GH¢ 500,000 in a year will pay 3% of their total sales as tax.
IMF endorses GH¢1 increase in fuel tax
YEN.com.gh reported that the International Monetary Fund backed the GH¢1 increase per litre in taxes on fuel products.
Speaking at a press briefing, Julie Kozack, Director of the IMF’s Communications, said the increase was a strategic measure aligned with the country’s fiscal goals under Ghana's ongoing IMF Extended Credit Facility (ECF) programme.
The government said the tax increase is needed to support the clearing of the $3.1 billion energy sector debt.
Source: YEN.com.gh
