Finance
The 2 taxes government introduced in January 2024
These tax measures were announced as part of efforts to shore up revenue and support various developmental projects and initiatives.
The first tax introduced was the controversial 15% Value Added Tax (VAT) on electricity consumption.
The Government, through the Minister of Finance, Ken Ofori-Atta, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) in a letter to implement a 15% VAT on electricity consumption effective January 1, 2024.
The letter said the VAT will apply to residential electricity customers above the maximum consumption level specified for block charges for lifeline units.
The implementation of VAT for residential customers of electricity is in line with Sections 35 and 37 and the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870).
The Consumer Protection Agency (CPA) in a GhanaWeb report on January 31, 2024, described the government’s decision to introduce a 15% Value Added Tax (VAT) on electricity as unfair and disastrous.
Chief Executive Officer for CPA, Kofi Kapito, in a press release stated that consumers of electricity were overburdened, therefore, the implementation of the tax measure will cause more harm than good to consumers.
The second tax introduced is the Vehicle Emission Tax. The tax requires that owners of vehicles with combustion engines pay a certain amount to the government and show proof of payment before obtaining their roadworthy certificate from the Driver and Vehicle Licensing Authority (DVLA).
Motorcycles & tricycles – GH¢75 per annum
• Motor vehicles, buses and coaches up to 3000 cc – GH¢150 per annum
• (i) Motor vehicles, buses and coaches above 3000 cc – GH¢300 per annum
(ii) Cargo trucks and articulated trucks – GH¢300 per annum
The driver groups, the minority and some members of the ruling NPP have vehemently opposed the introduction of this tax and called on the government to scrap it.
Source: www.ghanaweb.com
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