Plans for the proposed implementation of Value Added Tax (VAT) on electricity charges and an emission levy have been denounced by the Ghana Union of Traders Association (GUTA).
According to GUTA, both the VAT on electricity charges and the emission levy would have detrimental economic consequences, especially on businesses in the country.
A statement by the traders assocition stated: “GUTA firmly believes that the introduction of these additional costs will burden businesses, exacerbating the already high cost of doing business in the country. The proposed VAT on electricity charges will directly impact businesses, particularly those heavily reliant on electricity for their operations.”
Such businesses, the statement added and warned, would face increased financial strain that could potentially lead to reduced production capacity, layoffs, and even business closures “and ultimately impede economic progress and dampen job creation opportunities.”
Furthermore, GUTA indicated that the implementation of particularly, the emission levy, will further compound challenges in terms of double taxation and lack of electric vehicles infrastructure like charging stations and reliable source of power.
According to GUTA, Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.
To this end, GUTA called on the government to reconsider these measures and engage in thorough consultations with key stakeholders, including the business community, before implementing any new taxation policies.
“It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment,” stated GUTA.
Meanwhile, GUTA has advised the government to explore alternative means of revenue generation instead of overburdening businesses in the country with taxes.
Ghana | Atinkaonline.com| Porcia Oforiwaa Ofori