The Consumer Protection Agency (CPA) has backed calls from Trades Union Congress (TUC) and other civil society groups calling on government to withdraw the 15% VAT on electricity.
According to CPA, the government must be reminded that the regulatory role of PURC’s implementation of the automatic price adjustment on utility services in every quarter of the year would result in additional cost if the 15% VAT on electricity is accepted.
Speaking to the media, the Chief Executive Officer of CPA, Mr. Kofi Owusu Hene popularly known as Kofi Kapito said if this insensitive tax is allowed to be implemented, it would lead to double jeopardy for consumers.
“At this particular point in time, consumers of electricity are already overburdened and it will be unfair and disastrous on all electricity consumers, most especially households who do not add any value to electricity before using it”.
He mentioned that it is a fact that the government needs taxes for development but said, government can collect taxes in other ways and not on electricity consumption alone.
CPA like the TUC, is urging the government to implement other tax policies that would not impact negative citizens.
The current option is a bad one and must not be entertained.
The agency encourages government to reduce its expenditure which has become a burden on the Ghanaian tax payer.
“In view of this, we are entreating all electricity users in the country to join the CPA and the Trades Union Congress for a massive protest against this 15% VAT if it is not withdrawn.
According to Kofi Kapito, it is now time for all consumers to come together to let the government know that, they are elected to serve the interest of the people and not their interest.
However, government through the Ministry of Finance has appealed to organized labour and all key stakeholders including ECG and NEDCo to exercise restraints to facilitate a constructive dialogue towards a quick a quick resolution of the impasse in the coming weeks.