Audio By Carbonatix
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
-
CID arrests Counsellor Lutterodt over viral comments on Daddy Lumba
15 minutes -
Works and Housing Minister signs MoU with Turkish firms for major Accra water project
25 minutes -
Ghana not going to the World Cup just to make up numbers – Jordan Ayew
51 minutes -
Three arrested over the killing of Abamba Queenmother in Bono East
53 minutes -
Daily Insight for CEOs: Defending and expanding market share
55 minutes -
Auditor-General report flags GH¢162m in overstated claims by state agencies
56 minutes -
GH¢1.4 bn duplicated claims uncovered across MDAs – Deputy Finance Minister
1 hour -
‘We don’t need more additions’ – Jordan Ayew backs current Black Stars squad
1 hour -
ActionAid Ghana, the EU and GIZ hand over new dam to Buka community
1 hour -
US-Israeli war on Iran escalates as Trump warns of incalculable hit if Strait of Hormuz is blocked
1 hour -
Multivitamins could reduce biological age in older adults by months, study finds
1 hour -
African insurance leaders meet to chart path for industry growth and resilience
1 hour -
SSNIT assets hit GH¢25bn amidst TUC calls for grassroots pension literacy
1 hour -
Asante Akim North MP sponsors bill to regulate campaign financing
2 hours -
Full text: Deputy Finance Minister delivers A-G’s report on 2024 arrears and payables
2 hours
