The Ghana Union of Traders Association (GUTA) has raised concerns about the potential impact of proposed Value Added Tax (VAT) on electricity charges and the imposition of an Emission Levy. According to GUTA, the implementation of these levies could have detrimental effects on businesses operating in Ghana, potentially leading to layoffs and even business closures.
In a statement released on Sunday February 4, GUTA highlighted the increased financial strain that businesses, particularly those heavily reliant on electricity for their operations, would face as a result of the proposed VAT on electricity charges. This, in turn, could lead to reduced production capacity and job losses, ultimately impeding economic progress and dampening job creation opportunities.
Furthermore, GUTA pointed out that the imposition of the emission levy would compound challenges in terms of double taxation and the lack of infrastructure for electric vehicles, such as charging stations and a reliable source of power. The union emphasized that Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene, and LPG.
In light of these concerns, GUTA urged the government to reconsider these measures and engage in thorough consultations with key stakeholders, including the business community, before implementing any new taxation policies. The union emphasized the importance of ensuring that the voices and concerns of businesses are heard and taken into account to avoid hindering economic growth and investment.
Meanwhile, there have been recent developments regarding the proposed VAT on electricity charges. It has been reported that cabinet has decided to withdraw the controversial 15% VAT on electricity subject to further engagement with the IMF. This decision comes amidst mounting pressure from Labour and other stakeholders, with a demonstration planned by the Trade Union Congress on February 13 against the measure.
The government had initially justified the imposition of the tax as a measure to raise revenue to clear the energy sector debt in a bid to boost the viability of the sector. However, it appears that the concerns raised by various stakeholders have prompted a reconsideration of this decision.
It is evident that the issue of taxation policies and their impact on businesses is a matter of significant importance. As such, it is crucial for the government to carefully consider the implications of such measures and engage in constructive dialogue with all relevant parties to ensure that policies are implemented in a manner that supports economic growth and development.
In conclusion, GUTA's stance on the proposed VAT on electricity charges and the imposition of an Emission Levy underscores the need for thoughtful and inclusive decision-making processes when it comes to taxation policies. It is hoped that ongoing discussions and engagements will lead to solutions that strike a balance between revenue generation and supporting the sustainability of businesses in Ghana.
-source | 3news | curated by Abena Sorenam | Mydailyreports24
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