The Director of Business Operations at Dalex Finance, Joe Jackson, has said the government’s imposition of a Value Added Tax on residential customers of electricity above the maximum consumption level specified for block charges for lifeline units only exempts a few consumers.
According to him, the maximum consumption threshold is just a little below GH¢50 and may not shield vulnerable households.
“Don’t be deceived by the fact that the tax comes after the lifeline. The lifeline is so low that it barely makes a difference. This effectively translates to over 20% added to your electricity bill, and that’s harsh for struggling families,” he said as quoted by citinewsroom.com.
Joe Jackson said the government must find ways to generate revenue without overburdening the poor in the country.
“The government does need money and that is not in dispute because we have crises of cost on our hands and any tax that comes again and is an indirect tax will hurt the poor more than the rich and so it is not enough. The general population is suffering.
“I go for the government raising more money but I am always insisting that that has to be done through direct tax and not through indirect tax at a time when the general population is suffering,” he said.
SSD/NOQ
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Joe Jackson is a financial analyst
