The Minority in Parliament is kicking against some fresh taxes introduced on electricity tariffs by government through the Ghana Revenue Authority, describing it as draconian.
According to them, it is a very bad policy that will unnecessarily aggravate the COVID-19 inflicted burdens on consumers in these difficult times.
The GRA in a letter dated May 4, 2020, directed all electricity and power-producing companies to apply a GETfund levy of 2.5%, National Health Insurance Levy (NHIL) of 2.5% and Value Added Tax (VAT) at a standard rate of 12.5% on the value of their supplies.
“The Electricity Company of Ghana is to deduct the VAT of 12.5% paid as input tax in accordance with Section 48 of the Act,” the letter enjoined.
Reacting to the new directives in an interview monitored by ABC News, a former Deputy Energy Minister, John Jinapor who called for the immediate withdrawal of the taxes stated that government is being insensitive to the plight of the people.
He considered the policy as a backdoor approach by the Akufo Addo-led government to take back the 50% reduction in electricity bills.
He contended that the government has no right to introduce such taxes, adding that they will explore that in Parliament.
“We believe that it is an attempt to claw back the so-called 50% reduction. The question is, why has it not been implemented all this while and at a time that Ghanaians are suffering, at a time that people are losing their jobs, incomes are not coming because of the COVID issue? This is most unfortunate coming from a government that claims to be providing some cushion,” he said.
He added that “it is not just that; even the 50% benchmark values that were announced in the budget and touted by Dr. Bawumia. The government has issued yet another directive to the Ghana Customs Authority to revise the 50% with a list of so many items that will no longer qualify for the 50%.”
“What it means is that prices are going to going up, consumers are going to suffer, inflation going to rise and you and I the ordinary consumers will bear the brunt of this insensitive and draconian measure being implemented by the government,” the Member of Parliament for Yapei-Kusawgu claimed.
He intimated that the minority will use every legitimate and constitutional means possible, including street protests to get the taxes abolished.
“Since when did they realise that there was a law to charge consumers such huge taxes. Under the NDC, it never happened, under President Kuffour, it did not happen. So why is it happening at this time?”
“It is a deliberate attempt to ‘misread’ the law and to attempt to charge consumers a very unfair amount. And so what they are doing is most unfortunate,” he maintained.
Source: abcnewsgh
