Audio By Carbonatix
A close associate of the President, Asare Otchere-Darko seems to be preparing the minds of Ghanaians to a proposal to increase electricity tariffs.
This comes two days prior to the Finance Minister, Ken Ofori Atta’s expected presentation in Parliament, on the mid-year budget review.
“Will you rather pay a little more for power or Gov’t should go on subsidizing, denying other areas,” Otchere-Darko posted.
Gabby, as he is popularly called, noted that it “this year alone $1 billion extra will be spent by the state to support the cost of keeping your lights on.”
Asare Otchere-Darko
“Imagine what that can do,” he quizzed.
Why is the post significant?
A similar question was posed by Gabby last year when the Minister was preparing to present the 2018 mid-year budget review.
“Will you support a VAT increase to keep your lights on, your secondary schools filled, your school kids fed, your streets clean, your streets safe, young graduates employed, and decent, affordable homes built for working families,” he posted.
Days later when the budget review was presented, there was no nominal increment in the 17.5% Valued Added Tax (VAT).
However, two components of the VAT, the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) were stripped from the VAT and classified as separate taxes.
Despite many justifications from the government that there would be no major impact felt by the consumer opposition MPs and some experts disagreed.
They argued that the move was “an increment in VAT through the back door” since the backlash from Gabby’s post made them pull out from direct increment.
Whether or not electricity tariffs would see some adjustment or re-alignment can be judged from history.
Reactions
Meanwhile, some opposition figures have already begun kicking against any such increment.
The spokesperson on Finance for NDC MPs, Cassiel Ato Forson in a post rejecting increment in taxes in the budget review said: “my colleagues and I on our side in Parliament will do all we can to oppose these unfair increases and I call on you the good people of this country to reject these unfair, draconian increases in taxes.”
Former Deputy Power Minister, John Jinapor also in a Facebook post says “Ghanaians must totally reject any further Tax increases...”
Latest Stories
-
Government to roll out Free Primary Healthcare in the first week of April
2 hours -
The price of inaction: Why we must invest now to end FGM in West, Central Africa
3 hours -
Mahama recalls High Commissioner to Nigeria Baba Jamal over vote-buying allegations
4 hours -
VALCO not for sale; government pursuing strategic partnership to revive smelter – GIADEC CEO
4 hours -
GIADEC boss warns of job losses as government turns to partnerships to save VALCO
4 hours -
Baba Jamal expresses gratitude, calls for unity after securing Ayawaso East NDC slot
5 hours -
Ayawaso East Primary: TV “gifts” not meant to influence votes – Baba Jamal
6 hours -
Ayawaso East: I’ve been giving gifts this week – Baba Jamal admits giving out TV sets
6 hours -
Baba Jamal wins NDC Ayawaso East Primaries
7 hours -
NDC Ayawaso East primary: Baba Jamal expresses confidence after voting
7 hours -
Mahama approves operating licence for UMaT mining initiative
7 hours -
NDC condemns vote-buying in Ayawaso East primaries, launches investigation
7 hours -
Ayawaso East NDC primary: Sorting and counting underway after voting ends
8 hours -
Africa must build its own table, not remain on the menu — Ace Anan Ankomah
8 hours -
US wants Russia and Ukraine to end war by June, says Zelensky
8 hours
