The Ghana Union of Traders Association (GUTA) has issued a strong opposition to the proposed implementation of Value Added Tax (VAT) on electricity charges and the imposition of an emission levy.
According to GUTA, these proposed measures will have detrimental economic consequences for businesses operating within the country.
Expressing its firm stance, GUTA argued that the introduction of these additional costs will place an undue burden on businesses, aggravating the already high cost of conducting business operations in Ghana.
Particularly concerning is the proposed VAT on electricity charges, which GUTA asserts will directly impact businesses, especially those heavily reliant on electricity for their operations.
The potential outcome, according to GUTA, includes increased financial strain, reduced production capacity, potential layoffs, and even the risk of business closures, ultimately hindering economic progress and dampening job creation opportunities.
In addition to the concerns surrounding the VAT on electricity charges, GUTA highlights the potential challenges posed by the implementation of an emission levy.
The lack of infrastructure for electric vehicles, including charging stations and a reliable power source, could compound issues related to double taxation and further complicate the business landscape.
In a statement signed by the president of the association, Dr. Joseph Obeng, GUTA noted that Ghana already collects energy taxes, including a petroleum tax on various fuels such as gasoline, diesel, kerosene, and LPG.
GUTA strongly urges the government to reconsider these proposed measures and advocates for in-depth consultations with key stakeholders, particularly the business community, before implementing any new taxation policies.
The association emphasizes the importance of taking into account the voices and concerns of businesses to ensure the formulation of policies that foster economic growth and investment.
Furthermore, GUTA encourages the government to explore alternative means of revenue generation that do not place undue burdens on businesses, promoting a sustainable and conducive environment for economic development.