The Consumer Protection Agency (CPA) has expressed strong reservations about the recent tax increases implemented by the Ghanaian government, labeling them as excessive and burdensome for citizens.
The Agency has identified over 20 new taxes introduced this year alone, leading to what they describe as a growing sense of “tax fatigue” among Ghanaians.
In an interview on the Citi Breakfast Show, CEO of the CPA, Kofi Kapito, expressed dissatisfaction with the government's tax policy, emphasizing the impact on consumers.
Mr. Kapito particularly highlighted 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,” Mr. 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, effective January 1, 2024, announced the imposition of VAT on a specific section of electricity consumers in the country.
The VAT will apply to residential electricity customers above the maximum consumption level specified for block charges for lifeline units. This move is part of the government's Covid-19 recovery program.
According to the Finance Minister, Ken Ofori-Atta, the implementation of VAT for residential customers is in line with the Value Added Tax (VAT) Act, 2013 (ACT 870), aiming to generate revenue and support the country's Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Program for Economic Growth (PC-PEG).