Akufo-Addo Slaps 3% Tariff Increase On Electricity After Covid-19 Freebies  

It appears President Akufo-Addo is getting back at electricity consumers after the three-month electricity bill free ride as part of the Covid-19 relief program. His government has slapped a 3% extra tax on electricity.
 
The carrot-and-stick move is in full swing as the Ghana Revenue Authority has ordered for levies to be slapped in the form of VAT and NHIL charges.
 
By a letter dated 4th May, 2020, the Ghana Revenue Authority has directed the Energy Sector SOEs to commence Charging Electricity consumers GETFUND Levy of 2.5%, NHIL Levy of 2.5% and VAT of 12.5% respectively.
 
The move comes barely a month after announcing a 50% reduction on Electricity consumption for a duration of 3 months using March Benchmark consumption figures.
 
Former Deputy Energy Minister, John Jinapor, has called the taxing of Ghanaians at a time that citizens are already ravaged by Covid-19 as insensitive.
“This latest directive is not only insensitive and inhumane on the part of this Government but a complete betrayal of the trust of the People Ghana,” Jinapor lamented.
 
“From all indications the Economic Management team under Dr. Mahmoud Bawumia, has run out of ideas and hence resorting to such draconian and egregious policies which are inimical to the already impoverished taxpayers under this Government.”
 
He continued: “You cannot claim to have given the Ghanaian people a 3 months 50% tariff waiver and within the same time add on new taxes to their bills. This is absolutely insensitive and abhorring.”
 
Mr. Jinapoor is demanding a reversal of the taxes with immediate effect.
 
“The Akuffo-Addo Government must, with immediate effect withdraw this obnoxious policy or face the wrath of the ordinary Ghanaian who has tolerated the harsh policies of this Government for far too long. The government should not take the sustained tolerance of the people of Ghana as weakness and ignorance,” he wrote.