{"id":138497,"date":"2024-01-12T19:17:39","date_gmt":"2024-01-12T19:17:39","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/01\/12\/15-vat-imposition-on-electricity-harsh\/"},"modified":"2024-01-12T19:17:39","modified_gmt":"2024-01-12T19:17:39","slug":"15-vat-imposition-on-electricity-harsh","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/01\/12\/15-vat-imposition-on-electricity-harsh\/","title":{"rendered":"15% VAT imposition on electricity harsh"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Joe Jackson, Director of Business Operations at Dalex Finance has criticised the government\u2019s decision to impose a 15% Value Added Tax (VAT) on specific electricity consumers.<\/p>\n<p>He described the move as \u201charsh\u201d and argued that it disproportionately burdens low-income families.<\/p>\n<p>A January 1st letter from Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to apply the VAT to residential customers exceeding the maximum consumption level for lifeline units.<\/p>\n<p>However, Mr. Jackson argued that the current lifeline threshold, set below GH\u00a250, is too low to effectively shield vulnerable consumers.<\/p>\n<p>\u201cDon\u2019t be deceived by the fact that the tax comes after the lifeline,\u201d Mr. Jackson emphasized in an interview with Selorm Adonoo on <strong>Eyewitness News<\/strong>. \u201cThe lifeline is so low that it barely makes a difference. This effectively translates to over 20% added to your electricity bill, and that\u2019s harsh for struggling families.\u201d<\/p>\n<p>While acknowledging the government\u2019s need for additional revenue, Mr. Jackson urged alternative approaches to deal with the issues.<\/p>\n<p>\u201cThe government does need money and that is not in dispute because we have crises of cost on our hands and any tax that comes again and is an indirect tax will hurt the poor more than the rich and so it is not enough. The general population is suffering.<\/p>\n<p>\u201cI go for the government raising more money but I am always insisting that that has to be done through direct tax and not through indirect tax at a time when the general population is suffering.\u201d<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Joe Jackson, Director of Business Operations at Dalex Finance has criticised the government\u2019s decision to impose a 15% Value Added Tax (VAT) on specific electricity consumers. He described the move as \u201charsh\u201d and argued that it disproportionately burdens low-income families. A January 1st letter from Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":52961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-138497","post","type-post","status-publish","format-standard","has-post-thumbnail","category-local-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>15% VAT imposition on electricity harsh - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2024\/01\/12\/15-vat-imposition-on-electricity-harsh\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"15% VAT imposition on electricity harsh - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"Joe Jackson, Director of Business Operations at Dalex Finance has criticised the government\u2019s decision to impose a 15% Value Added Tax (VAT) on specific electricity consumers. 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