{"id":139778,"date":"2024-01-16T16:05:19","date_gmt":"2024-01-16T16:05:19","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/01\/16\/itll-be-an-exercise-in-futility-if-tariff-increase-wont-resolve-ecgs-debt-accumulation-kodzo-yaotse\/"},"modified":"2024-01-16T16:05:19","modified_gmt":"2024-01-16T16:05:19","slug":"itll-be-an-exercise-in-futility-if-tariff-increase-wont-resolve-ecgs-debt-accumulation-kodzo-yaotse","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/01\/16\/itll-be-an-exercise-in-futility-if-tariff-increase-wont-resolve-ecgs-debt-accumulation-kodzo-yaotse\/","title":{"rendered":"It\u2019ll be an exercise in futility if tariff increase won\u2019t resolve ECG\u2019s debt accumulation \u2013 Kodzo Yaotse \u2013"},"content":{"rendered":"<p><\/p>\n<div>\n<p>The Policy Lead for Petroleum and Conventional Energy at the Africa Centre for Energy Policy (ACEP), Kodzo Yaotse, has joined calls for the Value Added Tax (VAT) on electricity to be scrapped.<\/p>\n<p>The government in its instruction to the Ghana Revenue Authority (GRA) tasked it to collaborate with the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement VAT on households that exceed the lifeline power consumption.<\/p>\n<p>Finance Minister, Ken Ofori-Atta\u2019s directive, effective January 1, 2024, aims to transfer VAT generated from consumers surpassing the specified maximum consumption level for lifeline units.<\/p>\n<p>Already, former President John Mahama, the Minority, and energy experts have opposed this move, which took effect on January 1, and are calling for a reversal of the VAT imposed on some categories of residential electricity consumers.<audio src=\"https:\/\/www.myjoyonline.com\/wp-content\/uploads\/2024\/01\/WhatsApp-Ptt-2024-01-12-at-20.32.20.ogg\"\/><\/p>\n<p>In an interview on\u00a0<strong>Joy FM<\/strong>\u2019s Top Story on Friday, January 12, Mr Kodzo Yaotse argued that \u201cthe tax measure would be detrimental to the economy.\u201d<\/p>\n<p>He explained that when tariffs are imposed, it could lead to two outcomes \u2013 illegal power consumption which would further compound the revenue liquidity.<\/p>\n<p>He also indicated that \u201cconsumers that can pay for the power including small business will seek competitive alternatives outside the grid. With solar and other renewal energy becoming cheaper \u2013 this will be more favourable.\u201d<\/p>\n<p>He observed that this would also impact the Electricity Company Limited if consumers decide to disconnect from the grid.<\/p>\n<p>\u201cAny effort to increase tariff that is not complemented in resolving the debt accumulation at the distribution in which ECG is in charge of will be an exercise in futility,\u201d he added.<\/p>\n<p><strong>Source<\/strong>:\u00a0<a>Emma Ankrah<\/p>\n<p><!-- AI CONTENT END 1 --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Policy Lead for Petroleum and Conventional Energy at the Africa Centre for Energy Policy (ACEP), Kodzo Yaotse, has joined calls for the Value Added Tax (VAT) on electricity to be scrapped. The government in its instruction to the Ghana Revenue Authority (GRA) tasked it to collaborate with the Electricity Company of Ghana (ECG) and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":139779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-139778","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>It\u2019ll be an exercise in futility if tariff increase won\u2019t resolve ECG\u2019s debt accumulation \u2013 Kodzo Yaotse \u2013 - 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\/16\/itll-be-an-exercise-in-futility-if-tariff-increase-wont-resolve-ecgs-debt-accumulation-kodzo-yaotse\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It\u2019ll be an exercise in futility if tariff increase won\u2019t resolve ECG\u2019s debt accumulation \u2013 Kodzo Yaotse \u2013 - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"The Policy Lead for Petroleum and Conventional Energy at the Africa Centre for Energy Policy (ACEP), Kodzo Yaotse, has joined calls for the Value Added Tax (VAT) on electricity to be scrapped. 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