The Forum for Media Accountability and Democratic Governance (FoMADeG) has urged government to as a matter of urgency drop the Emission Levy to reduce the burden of hardship on Ghanaians.
According to the forum, it acknowledged the government’s decision to suspend the 15 per cent VAT imposition on electricity, however, that alone was not enough.
A statement issued and signed by the Executive Founder and Chief Steward of the Forum, Mr Cliff Ekuful said, “Following the huge public uproar against the imposition of the two new taxes- that is the Emission Levy as dictated by Section 4 (4) of Act 1112 and the 15 per cent VAT on consumption of electricity, government has withdrawn the later of the two taxes.”
The statement FoMADeG observed with concern why President Nana Addo Dankwa Akufo-Addo who ascended the seat of government on the back of the promise to move the country from taxation to production would resort to this route without taking a second look at the suffering of the citizenry.
“While the forum understands that government must raise enough revenue to execute its development agenda, the route adopted at this period is not only offensive but also not right,” the statement said.
In addition, it said It was important to emphasise that for government to choose to implement these taxes at this time when the level of hardship largely influenced by the effects of the COVID-19 Pandemic and the Russian invasion of Ukraine was not only inappropriate, but also insensitive.
“Ghanaians are already paying too much taxes including already existing fuel and road-use taxes, and the new addition clearly demonstrates a government that cares very little about the plight of its citizens,” it added.
The statement urged government to forestall any disturbances at the labour front and the country as a whole adding that “Indeed, labour and other stakeholders have sounded alarm bells on these introductions and are preparing to disturb the existing industrial harmony.”
“FoMADeG believes that this is not the time for such rancour especially given that this is an election year. Government must as a matter of urgency withdraw the two taxes and begin proper consultations on how to raise more revenues,” it emphasised.
The statement acknowledged the decision to suspend the 15per cent VAT on electricity describing it as good, however, it said the forum sincerely believed it was not enough and government must go ahead and suspend that of the emission levy as well.
The statement noted that this approach of resorting to indirect tax over the last three decades was nothing but the lazy man’s approach to managing the economy and the could not continue with the cycle.
“We believe the time has come for managers of the economy to find innovative ways to rope in more people into the direct tax bracket and stop overburdening Ghanaians with these needless indirect taxes,” it said.
The statement added that roping in a lot more people into the direct tax bracket would not only provide more revenue sources to the government but also free the citizens of some of the hardships they going through from the incessant increases in indirect taxes in the country.
“FoMADeG also calls for an honest conversation on the Ghanaian Economy devoid of the propaganda and over politicisation every economic decision in our country,” it said.
