30% tariff reduction not enough, scrap VAT – GFL to government

The General Secretary for the Ghana Federation of Labour (GFL), Abraham Koomson, has asked the Akufo Addo administration to scrap the Value Added Tax (VAT) in its quest to assist industries.

According to him, there are equally important taxes that need to be scraped or reduced, adding that a reduction in electricity tariffs is not enough.

The Public Utilities Regulatory Commission (PURC), has announced a general reduction in electricity tariffs effective March 15, 2018.

Residential customers per the new tariff cuts are to enjoy a 17.5% reduction, while non-residential customers will see tariffs cut by 30%.

Those in the mining sector have also been given a 10% tariff cut, and 25% cut for Special Load Tariff Customers (LV, MV & HV).

In an interview with Ekourba Gyasi on Atinka AM Drive, Abraham Koomson stated that the removal of other taxes plus the reduction in electricity tariffs will help cushion industries against huge production cost.

“The international markets have provided favorable environment for their industries to operate. If the government wants the industries to compete with the international markets, then they should provide such conditions,” he added.