Alan Kyerematen reacts to VAT on electricity

-

Former Trade Minister, Alan Kyerematen has expressed concern on the government’s decision to impose a 15 percent Value Added Tax (VAT) on electricity consumption.

Independent Presidential candidate has said the tariff will worsen the plight of the ordinary Ghanaian considering the prevailing economic challenge.

In a post on X formerly Twitter, Mr Kyerematen noted in the economic situation Ghana finds itself, every government policy among other things must reduce the cost of living.

“In the kind of economic situation we find ourselves, every government policy, plan or decision, has to have the objective of achieving the following; reduce the cost of living, reduce the cost of doing business, reduce exchange rate, and create sustainable jobs for the youth.

“Putting VAT on electricity will not achieve any of the above. It would rather worsen the plight of the ordinary Ghanaian,” Mr Kyerematen stated.

In this regard, the founder and leader of the Movement for Change has said that his Great Transformational Plan (GTP), “as a trusted roadmap, would guide us to achieve the above objectives and more.”

On January 1, Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, with the aim of generating revenue for the COVID-19 recovery program.

The announcement has sparked public outcry amidst calls for the government to rescind the decision.

The Trades Union Congress (TUC) has issued a seven-day ultimatum to the government, demanding a withdrawal of the tax which they believe will have adverse effects on the lives of ordinary Ghanaians, especially pensioners and low-income earners.

Organised Labour has threatened to embark on an industrial action if the government fails to heed to the call of TUC.

ALSO READ:

Read the full post below: