The Chief Executive Officer (CEO) of the Consumer Protection Agency (CPA), Mr. Kofi Kapito, has expressed strong criticism towards the government’s decision to impose a Value Added Tax (VAT) on residential electricity customers who exceed the lifeline units.
Mr. Kapito emphasized that the government should prioritize reducing its expenditure, which has become a burden on Ghanaian taxpayers. He urged all electricity users in the country to unite with the CPA and Trade Union Congress in a massive protest against this 15% VAT if it is not withdrawn by the implementation deadline of January 31, 2024.
During a press conference held in Accra today, Mr. Kapito denounced this measure as an unjustifiable appropriation of people’s money. He highlighted that the government should bear in mind that the regulator, PURC, will already be implementing automatic price adjustments on utility services in the first quarter. Therefore, any additional costs imposed by the government would be a double jeopardy for consumers.
The Ministry of Finance announced the VAT in a letter addressed to the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO). This tax, which came into effect on January 1, 2024, is part of the government’s Covid-19 recovery program. Consequently, Mr. Kapito questioned the reasoning behind taxing residential consumers for their electricity usage during today’s press engagement.
Source: Oyerepafmonline.com/ Bernard K Dadzie
