They have requested that the government revoke the charge by Wednesday, January 31, 2024, since it will exacerbate the hardship of the public.
The administration has explained the rationale for imposing a 15% VAT on energy use.
It is part of the government’s COVID-19 recovery initiative, which aims to generate additional money to help Ghana’s economy.
Despite the Trades Union Congress (TUC) and other civil society organisations’ objections, the administration is keen about implementing the programme.
Kofi Kapito, Chief Executive Officer of CPA, responded to the government’s hesitation, stating that Ghanaians are already overwhelmed and that implementing the policy would be unjust and harmful.
“At this particular point in time, consumers of electricity are already overburdened, and it will be unfair and disastrous on all electricity consumers, most especially households who do not add any value to electricity before using it,” a statement from the Agency explained.
“Government should not forget that PURC, the regulator, will definitely implement the automatic price adjustment on utility services in this first quarter, so any additional cost from the government will be a double jeopardy on consumers,” he added.
Kofi Kapito was quick to point out that the government may collect taxes in other industries for development but not on energy use.
He encouraged the government to minimise its own expenditure, which has become a burden on Ghanaian taxpayers, while also ensuring that properties in the nation are appropriately assessed and taxed.
He also urged power customers around the country to join the CPA and the Trades Union Congress in a large demonstration against the 15% VAT if it is not repealed by January 31, 2024, the implementation deadline.
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