General News Sat, 10 Sep 2016

Akufo-Addo must disclose how he’ll settle Energy sector legacy debt – Gov't

Minister of Employment and Labour Relations, Haruna Iddrisu has challenged the Flagbearer of the largest opposition, New Patriotic Party (NPP) Nana Akufo-Addo to publicly state how he intends to settle the energy sector legacy debt.

The three-time Presidential Candidate, Nana Akufo Addo addressing the annual conference of the Ghana Employers Association said he’ll review the Energy Sector levy if the NPP is voted into power.

He indicated that among the various taxes to be reviewed include abolishing 17.5% domestic airline ticket, reducing VAT for Micro and Small enterprises from the current 17.5% to the 3% VAT rate introduced by the previous NPP government and also reviewing Energy Tariff policy to reduce the burden of businesses and the promotion of the supply of energy related activities.

But Hon. Haruna Iddrisu has dared Akufo Addo to disclose how he’ll pay off the energy sector legacy debt, adding that government necessarily had to introduce the Energy sector levy, mindful of its effect on industry and consumers but necessary to save the collapse of an industry which is critical to the survival of industry itself.

“Today Energy sector levy can bring in GHC300 to 600m in order that government can leverage on a 1.2 b legacy debt that poses a major threat to the survival of the financial sector and in particular to the energy sector. You may promise that you’ll do away with it, but promise how to deal with the debt outstanding.”

Government introduced the energy sector levies are to clear the debts of state-owned enterprises in the energy sector that have encountered serious financial challenges, such as the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG), and to improve their viability.

The levies would be used to control their debts and to unlock receivables that are currently being hindered.

Source: kasapafmonline.com