Samson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana, has described the government’s justification for the 15 per cent VAT on electricity consumption as childish.
According to him, this is nothing but a disaster for consumers, especially the business community.
The government intends to raise more revenue as part of its COVID-19 recovery programme, and as part of the measures taken, it has directed the imposition of VAT on electricity.
In a letter dated January 1, Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to apply VAT to residential customers exceeding the maximum consumption level for lifeline units.
Several individuals have asked the government to reverse the decision because it is insensitive and will worsen the plight of the people.
Deputy Energy Minister Andrew Agyapa Mercer described the removal as a difficult decision but said it was justified.
According to him, it is necessary to do so to clear off debts owed to independent power producers.
“Obviously, if you look at the scope of the tax and what it is intended to do—raise revenue to meet some obligations of the government in the energy sector—it will interest you to know that, as we speak, as of July 2023, the amount of money that we owe to the IPPs alone is in the region of GH¢1.7 billion.”
But Samson Asaki Awingobit says the justification by the Deputy Minister is “childish.”.
He noted that, although he respects the Deputy Minister, he does not agree with these assertions and that he ought to withdraw them.
“I have respect for the honourable gentleman. He is a fine gentleman. I admire him from afar, and I am sure he also admires me from afar. But justification is meant for children, not adults. His justification is childish. Forgive me. But his explanation is childish. Every sector is complaining.
There are so many tax components in this country, and that is affecting our lives.
Concerning driver unions, the GPRTU is also complaining.
“If you claim that you need money so you will tax Ghanaians, that is childish, and he should tell that to our children in kindergarten,” he said in an interview on Frontline on Rainbow Radio 87.5Fm.
By: Rashid Obodai Provvencal/Rainbowradioonline.com/Ghana
