Budget revision: Will the Minister of Finance propose an increase in the price of electricity?

Company News of Saturday, July 27, 2019

Source: Myjoyonline.com

2019-07-27

A close badociate of the president, Asare Otchere-Darko, seems to prepare the spirit of the Ghanaians to a proposal to increase electricity tariffs.

This comes two days before Minister of Finance Ken Ofori Atta's presentation to Parliament on the mid-term budget review.

"Will you pay a little more for power or the government should continue to subsidize, refusing other areas," said Otchere-Darko.

Gabby, as it's popularly called, said that "this year alone, an additional billion dollars will be spent by the state to cover the costs badociated with maintaining lighting."

"Imagine what it can do," he asked.

Why is the job significant?

Gabby asked a similar question last year, as the minister prepared to present the mid-year budget review of 2018.

"Will you support an increase in VAT to keep your lights on, your high schools full, your children fed, your streets clean, your streets safe, young graduates employed and decent and affordable homes built for working families? He said.

A few days later, during the presentation of the budget review, the value-added tax (VAT) of 17.5% did not increase.

However, two components of the VAT, the National Health Insurance Tax (NHIL) and the Ghana Education Trust Fund (GETFund) have been withdrawn from VAT and clbadified as a "tax credit". separate taxes.

Despite many of the government's reasons that consumer opposition MPs would have no major impact, some experts disagreed.

They argued that the move was "an increase in VAT through the back door", as the backlash from Gabby Post forced them to withdraw from direct progression.

History makes it possible to judge whether electricity rates should be adjusted or realigned.

The reactions

Meanwhile, some opposition figures have already begun to criticize such an increase.

Cbadiel Ato Forson, spokeswoman in charge of finance for NDC deputies, in a message rejecting the tax increase in the budget, said: "My colleagues and I, in Parliament, will do our utmost for us to oppose these unfair increases and I brave people of this country to reject these unfair and draconian increases in taxes. "

The former deputy minister of electricity, John Jinapor, also said in an article on Facebook: "Ghanaians must totally reject any further increase in the tax …"