The Value Added Tax (VAT) on energy rates and the imposition of an emission levy have drawn criticism from the Ghana Union of Traders Association (GUTA).
The group contends that the country’s enterprises will suffer grave economic consequences as a result of these policies.
GUTA expressed concerns in a press statement dated February 4, 2023, on the possible negative outcomes of these supplementary expenses, asserting that they will further intensify the already exorbitant expenses associated with conducting business in Ghana.
“Businesses, especially those that largely rely on power for their operations, will be immediately impacted by the proposed VAT on electricity rates. A section of the statement stated, “These companies will experience greater financial strain, which may result in lowered production capacity, layoffs, and even business closures, ultimately impeding economic progress and dampening job creation opportunities.”
GUTA also draws attention to the difficulties presented by the pollution tax, highlighting issues with double taxing and the dearth of infrastructure for electric cars, such as charging stations and a dependable power source.
It stated that “Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.”
Before enacting any new taxation policy, the government should carefully evaluate these suggested measures and discuss widely with all relevant parties, especially the business community, according to the communiqué issued by GUTA President Dr. Joseph Obeng.
“It is imperative that business concerns and opinions be addressed in order to guarantee that policies do not impede investment and economic progress.
