Renowned Ghanaian economist Professor Godfred Bokpin has criticized the government’s decision to impose a value-added tax on domestic electricity consumption that took effect on January 1.
In an interview on Accra-based JoyNews’ AM Show on Tuesday, January 16, Prof Bokpin slammed the timing of the new tax, saying it sends the wrong message to Ghanaians on a new year.
“Government’s New Year message to Ghanaians was imposing VAT on electricity,” he stated.
The economist questioned the NPP government about its claim that the country’s economy has turned the corner.
According to him, government should show real evidence that conditions are improving in the lives of Ghanaians.
“Where is the impact of government’s claim that the economy has turned the corner?” he quizzes.
Prior to this, electricity supply for residential use was exempt from VAT up to the maximum consumption level specified for lifeline tariffs.
According to many Ghanaians, particularly Dr. Cassiel Ato Forson, the Minority Leader of Parliament, the addition of VAT to power bills will worsen the financial burden on citizens who already pay high electricity tariffs amid rising inflation.
They questioned why the government is concentrating on increasing taxes at a time when many Ghanaians are still struggling economically.
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