VAT on electricity will only increase the plight of Ghanaians – Alan Kyerematen

Independent presidential aspirant, Alan Kwadwo Kyerematen, has waded into the conversation about the government’s imposition of a new Value Added Tax (VAT) on electricity consumers beyond the lifeline threshold.

According to the former Trade and Industry Minister, the tax will only worsen the plight of Ghanaians.

In a post on social media platform X (formerly Twitter), the founder of the Movement For Change said amidst the prevailing hardship Ghanaians are facing, it was not a good time for the government to burden the citizenry with new taxes.

“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” the former minister said.

Putting VAT on electricity will not achieve any of the above. It would rather worsen the plight of the ordinary Ghanaian” he stressed.

Mr. Kyerematen noted that his Great Transformational Plan (GTP), “as a trusted roadmap, would guide us to achieve the above objectives and more.”

Various groups and individuals have condemned the VAT on electricity, with the Trades Union Congress (TUC) issuing a seven-day ultimatum to the government to withdraw the tax.

The General Secretary of TUC, Dr. Yaw Baah stressed on the detrimental impact of this move on the livelihoods of ordinary Ghanaians, particularly pensioners and those with low incomes.

“We will not pay it today or tomorrow. Organised Labour is demanding the immediate withdrawal of the letter, and another directive from the Finance Minister to Ghana Grid Company (GRIDCo), ECG to stop the implementation of the VAT on electricity. We are giving the government, up to January 31, 2024, to withdraw the letter,” Dr Yaw Baah said.

He emphasized that they would take the necessary action if the Finance Minister did not instruct GRIDCo and ECG to retract the letter.

“If by that time the Minister of Finance fails to give directive to GRIDCO and ECG, we will advise ourselves,” he said.