The Ghana Union of Traders Association (GUTA) has expressed its opposition to the proposed implementation of Value Added Tax (VAT) on electricity charges and the imposition of an emission levy.
The association argues that these measures will have severe adverse economic impacts on businesses operating within the country.
In a press release issued on February 4, 2023, GUTA expressed concern about the potentially detrimental consequences of these additional costs, stating that they will only escalate the already high cost of doing business in Ghana.
“The proposed VAT on electricity charges will directly impact businesses, particularly those heavily reliant on electricity for their operations. Such businesses will face increased financial strain, which could potentially lead to reduced production capacity, layoffs, and even business closures and ultimately impede economic progress and dampen job creation opportunities,” portions of the statement read.
Additionally, GUTA highlights the challenges posed by the emission levy, emphasizing concerns over double taxation and the lack of infrastructure for electric vehicles, including charging stations and a reliable power source.
It added that “Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.”
The communique signed by GUTA President, Dr. Joseph Obeng urged government to reconsider these proposed measures and engage in extensive consultations with key stakeholders, particularly 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.
