Ghana Union of Traders Association Opposes Proposed VAT on Electricity and Emission Levy

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, citing potential severe economic repercussions for businesses operating within the country.

In a press release issued on February 4, 2023, GUTA conveyed concerns about the adverse impacts of these additional costs, emphasizing that they would exacerbate the already high cost of doing business in Ghana.

The press statement highlighted the direct impact of the proposed VAT on electricity charges on businesses, especially those heavily reliant on electricity for their operations. GUTA warned that such businesses could face heightened financial strain, leading to potential reductions in production capacity, employee layoffs, and even business closures, ultimately hindering economic progress and job creation opportunities.

Additionally, GUTA underscored challenges associated with the emission levy, expressing worries about double taxation and the absence of infrastructure for electric vehicles, including charging stations and a reliable power source. The association noted 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 the government to reconsider these proposed measures and engage in extensive consultations with key stakeholders, particularly the business community, before implementing any new taxation policies. Emphasizing the importance of taking into account the voices and concerns of businesses, GUTA stressed the need for policies that foster economic growth and investment without hindrance.

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