In a strong critique of the government’s recent decision, independent presidential aspirant and former Trade and Industry Minister, Alan Kwadwo Kyerematen, expressed his concerns over the imposition of a new Value Added Tax (VAT) on electricity consumers beyond the lifeline threshold.
Kyerematen, the founder of the Movement For Change, took to social media to denounce the move, stating that burdening citizens with new taxes during existing economic challenges is untimely and unjustifiable.
Amid the prevailing economic hardships faced by Ghanaians, Kyerematen stressed that every government policy, plan, or decision should focus on reducing the cost of living, doing business, stabilizing the exchange rate, and creating sustainable jobs for the youth. According to him, the imposition of VAT on electricity would fail to achieve any of these objectives and instead worsen the hardships experienced by ordinary Ghanaians. He pointed to his Great Transformational Plan (GTP) as a reliable roadmap to guide the nation towards achieving these objectives and more.
The announcement of the VAT on electricity has triggered widespread condemnation from various groups and individuals, including the Trades Union Congress (TUC). Dr. Yaw Baah, the General Secretary of TUC, issued an ultimatum to the government, demanding the immediate withdrawal of the tax and emphasizing its detrimental impact on the livelihoods of ordinary Ghanaians, especially pensioners and low-income earners.
During a press conference, Dr. Baah stressed that the impoverished population cannot afford the additional tax burden. He called on the government to retract the implementation of the proposed tax before January 31, 2024. Dr. Baah warned of organized labor’s readiness to take further action if the Finance Minister fails to instruct relevant agencies to withdraw the tax directive.
Former President John Dramani Mahama also expressed his agreement with the criticisms. The government argues that the 15 percent VAT on electricity consumption is part of its COVID-19 recovery program, aimed at generating additional revenue. However, critics argue that such measures unfairly burden the most vulnerable segments of society.
Source: Ngamegbulam Chidozie Stephen
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