…Joins calls for emission tax and VAT on electricity withdrawal
In a surprising turn of events, the New Patriotic Party (NPP) is facing internal dissent as the grassroots fraternity voices strong support for Henry Nana Boakye, the NPP National Organizer, who last week called for the immediate withdrawal of the emission tax and VAT on electricity.
The Herald last week Friday, reported how the imposition of emission tax and VAT on electricity, has sparked controversy within the NPP, and on the same day Nana Boakye alias “Nana B” openly opposed these measures in an interview on Accra-based Peace FM.
He insisted that as party executives who are in touch with the electorates, he can say that the two taxes are resonating with Ghanaians, especially in an election year.
He mentioned that in Europe, China and America there are no emission taxes, rather people are encouraged to use electrical cars by way of curbing air pollution.
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The support for “Nana B” comes as Organized Labour, is set to embark on a nationwide demonstration against the government’s imposition of a 15percent VAT on Electricity.
The labor groups, gave the government a 2-week ultimatum to withdraw the controversial tax, but the directive to the power distributors remains, and in protest against the policy, the Secretary-General of TUC, Anthony Yaw Baah, on Friday, February 2, 2024, announced a nationwide demonstration on February 13.
The NPP grassroots members, representing the party’s core base, have now joined in solidarity with Nana Boakye’s stance, expressing concerns about the impact of these taxes on the party’s grassroots mobilization efforts, especially during an election year.
Grassroots Fraternity’s Position in a press release issued on Saturday, February 3, 2024, by Kwame Agyapong, the Grassroots President, emphasized the unity of the grassroots fraternity in supporting Nana Boakye’s call.
The release highlighted that this is not an act of defiance against the government, but a genuine plea to address the challenges faced by ordinary citizens and grassroots members.
The grassroots fraternity, unequivocally supports Nana Boakye’s bold stance against the emission tax and VAT on electricity.
The release points out that the imposition of these taxes during an election year poses significant obstacles for grassroots mobilization and could undermine the party’s mission to “Break the 8.
The grassroots members call upon the leadership of the NPP to join them in opposing the taxes and urge the party’s council of elders to intervene decisively in appealing to the government for the immediate withdrawal of these taxes.
While, affirming their commitment to the party’s objective of “Breaking the 8,” the grassroots fraternity stresses that the imposition of such taxes threatens to derail their progress.
The grassroots fraternity, concludes the press release by urging the government to acknowledge their concerns and take swift and decisive action to address the issues raised.
The call for unity within the party emphasizes the importance of prioritizing the welfare and prosperity of all Ghanaians as they work towards a brighter future for the nation.
The Secretary-General of TUC, announced “In our earlier statement, we said if by the 31st of January 2024, the government had not withdrawn its directive, we would advise ourselves. So this afternoon, we’ve met here, and we’ve advised ourselves. It is that advice that we will communicate to the president. Our advice is straightforward. We have advised ourselves that this government is taking us for granted, so we are going to lead massive demonstrations in all the 16 regional capitals of Ghana on 13th February.”
The Trades Union Congress (TUC) in January 2024 gave the government a seven-day ultimatum to withdraw the imposition of Value Added Tax (VAT) on electricity consumption above lifeline.
At an earlier press conference on January 23, Dr Baah said “It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organised Labour, we have come together and our message to the government is very simple, we cannot pay VAT on electricity.”
“We will not pay it today or tomorrow. Organised Labour is demanding the immediate withdrawal of the letter, and another directive from the Finance Minister to Ghana Grid Company (GRIDCo), ECG to stop the implementation of the VAT on electricity. We are giving the government, up to January 31, 2024, to withdraw the letter,” Dr Yaw Baah said.
Meanwhile, the government said it’s ready to hold an extensive dialogue with Organised Labour and other key stakeholders in the coming weeks on the VAT on electricity.
The stakeholder dialogue, as stated by the Finance Ministry in its statement dated January 30, 2024, is aimed at ensuring stakeholder buy-in.
“The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on the consumption of electricity by residential customers. Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in,” the Ministry said in its statement.
Meanwhile, the Executive Director of the Institute of Energy Security (IES), Nana Amoasi VII, is advising the government to invest in the construction of roads in the country to reduce the emissions levy.
The government, on February 1, 2024, introduced a new tax policy on carbon dioxide equivalent emissions on internal combustion engine vehicles, however, key personalities, including the Ghana Private Road Transport Union (GPRTU), have kicked against the move by the government, but their efforts have proved futile.
Mr. Amoasi, speaking on The Big Issueon February 3, 2024, with Selorm Adonoo, described the tax as a nuisance in the sense that it is going to create additional costs for Ghanaians.
According to him, the construction of more roads and ensuring traffic moves will help reduce the emissions tax.
He urged the government to create more roads and establish adequate infrastructure for vehicles.
“I am Ghanaian. I’m irritated by the numerous taxes I pay on a litre of fuel, and so if I describe the imposition of this emissions levy as a nuisance, I am right. I know how I feel. I know how my disposable income has been negatively affected.”
“The way forward, I think, is that the government must invest in decongesting the road. Construct more roads and ensure that traffic moves so that emissions will go down. Invest in electric vehicle infrastructure as well; it motivates people to move.”
