Ghana is now unfriendly for doing business because of the cost of electricity – Mahama reacts to new VAT on tariff

Former President John Mahama has joined calls for the reversal of the Value Added Tax (VAT) on electricity, as the Minority and energy experts are increasingly calling for its abolition.

Finance Minister Ken Ofori Atta stated that any electricity consumption above lifeline units will attract the levy, as part of the government’s Covid-19 recovery programme.

However, the National Democratic Congress presidential candidate claims that the move will only increase electricity costs, which have seen a 29% increase.

Mr. Mahama asserts that the rise in electricity bills will significantly increase the cost of conducting business in Ghana.

“Today, they’ve put Value Added Tax on electricity bills and Covid levy, GETFund levy, NHIS levy on electricity bill and so that is going to send the cost of your electricity up.
“Already, there was a 29% and 19% increase then they tried to fool us with a 4% decrease and now it is going up again astronomically making Ghana a very difficult place to do business,” he said while addressing a gathering at Hohoe as part of his tour of the region.