The Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye has argued that the current economic conditions make it imprudent to impose a value-added tax (VAT) on electricity.
He highlighted the unresolved issue of electricity theft in Ghana during an appearance on JoyNews' Newsfile.
Mr Boakye cautioned that implementing a VAT on electricity would escalate the burden on consumers and might prompt more individuals to resort to electricity theft.
“We don’t have the system to be able to address the leakages that are happening everywhere in the country.
"There is no money, so that additional tax on consumers who are about 30 to 35% of the total consuming populace, I don’t think it’s going to shift anything,” the ACEP boss indicated on Saturday, January 13.
He pointed out the need to focus on ensuring that consumers who are not paying for their electricity are held accountable.
According to Ben Boakye, the energy sector has the necessary systems in place to account for power generation and monitor usage.
He added that the energy sector needs to focus on optimizing tariffs and making sure that people are paying for the electricity they use.
Once these issues are addressed, the government can then consider introducing new taxes if necessary.
"How do we generate new revenue? Otherwise, you will only have a few credible consumers who are always taking the bullet, always taking the higher tariffs and that wouldn’t change anything at this point.”
Latest Stories
-
Israel orders more evacuations as Rafah fighting intensifies
3 mins -
Connielove Dzodzegbe: The childless mother
3 hours -
Media houses must uphold high standards – Gyan Apenteng
3 hours -
Virginia university students walk out of graduation event
9 hours -
Energy Commission issued advisory on recent power interruptions in 2023
9 hours -
Ghana to lobby AU for intercontinental initiative on reparations – President
9 hours -
Dollarise Ghana’s economy to curb Cedi depreciation —Dr Kwakye suggests
10 hours -
Art Tech Institute launched to revolutionise jewelry education in Ghana
10 hours -
Mohammed Kudus’ solo strike against Freiburg wins West Ham Goal of the Season
11 hours -
MTN FA Cup: Nsoatreman beat Legon Cities to make first-ever final
11 hours -
MTN Ghana Foundation’s new maternity, NICU block brings joy to expectant and nursing mothers on Mother’s Day
13 hours -
Finance Minister urges GRA Customs Division to intensify revenue collection efforts
13 hours -
Work hard to exceed expectations – Finance Minister to Customs officials
14 hours -
World Bank and IMF can press Ghana to rethink ‘punitive’ LGBTQ law – CSOs, others
14 hours -
Ghana’s secondary education ranking misrepresented – MoE
14 hours