The Executive Director of the Alliance For Social Equity and Public Accountability (ASEPA), Mensah Thompson, is accusing the Nana Akufo-Addo and Mahamudu Bawumia’s administration of running an authoritative administration. This accusation comes in light of the introduction of the 15 percent VAT on electricity.
In a letter dated January 1, Finance Minister Ken Ofori-Atta directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, aiming to raise revenue for the COVID-19 recovery program.
Several individuals, including the Director of Business Operations at Dalex Finance, Joe Jackson, criticized the government’s decision to impose the VAT on consumers, describing it as harsh. Kofi Kapito, the Chief Executive Officer (CEO) of the Consumer Protection Agency, also described it as ridiculous.
The Ghana Union of Traders Association (GUTA) strongly opposed the proposed tax.
However, reports suggest that the government has opted to cancel the imposition of the 15% Value Added Tax (VAT) on electricity. This decision, relieving consumers from the new tax on electricity bills, is said to have been made during a cabinet meeting on February 2, 2024.
Despite the cancellation of the tax, the ASEPA boss, speaking on Breakfast Daily on Citi TV with David Kwaku Sakyi, described the Akufo-Addo administration as authoritative, asserting that the government failed to engage stakeholders following concerns against the tax.
He says if consultation had been done, the situation would not have reached its current state. Mr. Thompson believes the action by the president is an insult to Ghanaians for failing to engage civil society.
He said, “Today we have national executives of the ruling government of the ruling party on TV and on radio telling us that they disagree with that tax. It is a positive sign but it also tells you the huge disconnect between the governmnet and the party and the disrespect, the disrespectful manner of President Akufo-Addo and Bawumia….., they didn’t consult anybody, to the extent that even if they brought things that will affect we the citizens directly, they fail to do a consultation.”
“What consultation did they do on this emissions tax, on this VAT on electricity before they decided to introduce it into the budget?”
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