The Ghana Union of Traders Association (GUTA) has voiced vehement opposition to the proposed imposition of Value Added Tax (VAT) on electricity charges and the introduction of an emission levy. GUTA argues that these measures could have severe economic repercussions for businesses operating in Ghana.
According to GUTA, the additional costs associated with VAT on electricity charges would exacerbate the already high cost of doing business in the country. Businesses heavily reliant on electricity for their operations may experience increased financial strain, potentially leading to reduced production capacity, layoffs, and even business closures. This, in turn, could impede economic progress and hinder job creation opportunities.
The concerns extend to the proposed emission levy, with GUTA highlighting challenges related to double taxation and the lack of necessary infrastructure for electric vehicles, such as charging stations and a reliable power supply. Ghana already imposes energy taxes, including petroleum tax on various fuels.
GUTA is urging the government to reconsider these proposed measures and advocates for thorough consultations with key stakeholders, including the business community, before implementing any new taxation policies. The association emphasizes the importance of ensuring that the concerns and voices of businesses are taken into account to avoid hindering economic growth and investment.
Furthermore, GUTA encourages the government to explore alternative means of revenue generation that do not place undue burdens on businesses. The call for a more inclusive and consultative approach reflects the association’s commitment to fostering economic sustainability and growth in Ghana.
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