Former Energy Minister, Dr Matthew Opoku Prempeh has stated the New Patriotic Party (NPP) is not responsible for value-added tax (VAT) on electricity.
According to him, it was a policy introduced by the erstwhile John Mahama administration.
Despite not stating the specific year, Napo as he is popularly known disclosed this on Asempa FM Ekosii Sen programme Wednesday.
The NPP Vice Presidential candidate explained that, although the ruling government inherited it, they never implemented it until a recommendation from the International Monetary Fund (IMF).
“When we announced the implementation, the NDC went haywire, forgetting that they introduced it but President Akufo-Addo never rolled it out. So it’s possible for a government to introduce a policy without implementing it,” he said.
On January 1, former 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 sparked public outcry amidst threats of demonstration, industrial and calls for the government to rescind the decision.
Amidst the growing calls for a reversal, National Democratic Congress (NDC) flagbearer, John Mahama said the move will only pile up the cost of electricity, which has seen a 29 percent increase.
He argued that, the increase in the electricity bill will make the cost of doing business in Ghana unbearable.
Government subsequently succumbed to the pressure and suspended policy.
ALSO READ:Â