VAT on electricity will increase bills, make Ghana unfriendly for business – Mahama
Former President John Mahama is the latest to add his voice to calls for the reversal of the Value Added Tax (VAT) on electricity.
There are growing calls from the Minority and energy experts for the reversal of a Value Added Tax imposed on some categories of residential electricity consumers.
In a letter communicating its policy to the Public Utility Regulatory Commission, Finance Minister Ken Ofori Atta states that any electricity consumption above lifeline units will attract the value-added levy.
The ministry explains that the move is part of the government’s Covid-19 recovery programme.
However, the National Democratic Congress’ (NDC) presidential candidate says the move will only pile up the cost of electricity, which has seen a 29 percent increase.
Mr. Mahama argues that the increase in the electricity bill will make the cost of doing business in Ghana unbearable.
“Today, they’ve put Value Added Tax on electricity bills and Covid levy, GETFund levy, NHIS levy on electricity bill and so that is going to send the cost of your electricity up.
“Already, there was a 29% and 19% increase then they tried to fool us with a 4% decrease and now it is going up again astronomically making Ghana a very difficult place to do business,” he lamented.
Also, Energy expert, Kwadwo Nsafoah Poku has bemoaned government’s timing in introducing VAT on electricity.
In an interview on Joy FM’s Top Story on Wednesday, Mr Poku expressed the view that while taxes may be necessary to address the energy crisis, imposing them all at the beginning of the year, especially alongside various other taxes, is not ideal.
“I think the timing is wrong. It is a wrong time to introduce more VAT on electricity at this stage,” he said.
According to the energy expert, in as much as there is a cry for more money to be raised to fix the Electricity Company of Ghana and the energy sector, the implementation date should be reconsidered.
He believes there is a need for sensitisation around the VAT introduction on electricity, adding that there is a need to update ECG’s software.
Source:VAT on electricity will increase bills, make Ghana unfriendly for business - Mahama - MyJoyOnline
Disclaimer: "The views expressed on this site are those of the contributors or columnists, and do not necessarily reflect 24houreconomy.org’s position. 24houreconomy.org will not be responsible or liable for any inaccurate or incorrect statements in the contributions or columns here."
Share On Social Media
24-HOUR ECONOMY
Economy
Related News
News
24-Hour economy policy a major improvement on past fragmented initiatives – IMANI Africa
Read More
GPHA launches full 24-hour operations at Tema and Takoradi Ports in response to presidential directive
Read More
