TEIN NDC criticises government’s 15 per cent VAT on electricity

The National Tertiary Education Institutions Network (TEIN) of the National Democratic Congress (NDC) has criticised the government of being inconsiderate over its decision to impose a 15 per cent Value Added Tax (VAT) on electricity.

 In a letter, dated January 1, Finance Minister, Ken Ofori-Atta, instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to impose the 15 per cent VAT on residential customers exceeding the maximum consumption level for lifeline units (30 kilowatt/hour). 

Statement

A statement signed and issued by the National TEIN Coordinator, Mohammed Saddiq Gombilla, said the move by the government was nothing short of heartlessness, stating it would affect students the most. 

“Over the past four years, students have grappled with numerous hardships, including incessant rises in academic user fees.The sudden government decision to escalate VAT adds to their woes, detrimentally impacting their mental well-being,” it said. 

“This decision hits students the hardest, being the most vulnerable group. VAT becomes a stealthy intruder into their lives, affecting components of their bills contingent on consumption. 

It means, while all institutions prohibit the use of gas cookers for fear of fire outbreak and, therefore, encourage the use of electric cookers, students who have been cooking their meals by the electric cookers and charging their laptops, phones, and bulbs will be shackled by this additional payment”, the statement lamented. 

It urged the government to do something about the sudden decision to impose VAT on electricity.

“It is high time the government prioritised the health of Ghanaians over ruthless financial impositions. This is nothing short of heartless” it added.