The Consumer Protection Agency (CPA) in Ghana has expressed strong concerns over the recent tax increases implemented by the government, labelling them as excessive and burdensome for citizens.
The agency raised the alarm, noting that over 20 new taxes have been introduced in the current year alone, leading to a sense of “tax fatigue” among Ghanaians.
In an interview on the Citi Breakfast Show, the CEO of the CPA, Kofi Kapito, expressed dissatisfaction with the government's tax policy.
He pointed to the recent imposition of Value Added Tax (VAT) on residential electricity consumption as a prime example of the escalating tax burden.
“The consumer is tired,” Kapito stated. “This year alone, from the first of the year, there have been more than 20 taxes introduced. Cars now, if you register a vehicle, you're forced to pay a 100 cedis for what? Insurance has gone up.”
The government's decision to impose VAT on specific residential electricity consumers came into effect on January 1, 2024.
This move is part of the government's COVID-19 recovery program and is intended to generate revenue to support the country's Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Program for Economic Growth (PC-PEG).