The Integrated Social Development Center (ISODEC) wants government to scrap the subsidies on electricity tariffs and rather reduce the taxes on petroleum products.
This follows the re-introduction of subsidies by the Electricity Company of Ghana to cushion low level consumers of electricity and to support industrial and commercial consumers of power.
Campaign Coordinator of ISODEC Dr Steve Manteaw who made the call said the subsidies are a cover up for higher taxes that negatively affect consumers.
[contextly_sidebar id=”DzCIuKQER3OKu3SO5P2vaBO1GKkZLUru”]Per the latest decision, electricity consumers are expected to pay less if their power consumption is between zero and fifty units in a billing cycle.
However the Campaign Coordinator of ISODEC, Dr Steve Manteaw told Citi News, government must as a matter of urgency do away with the subsidies as consumers are likely to be saddled with high energy sector levies.
“In time past, government has introduced or announced subsidies only for government to turn around and blame us for the unsustainable debt burden facing ECG and now to levy us 10% to pay for what they call legacy debt. I’m saying that, our fears, given the past experience is that, they will announce subsidy today because elections are upcoming only to turn around and tell us that they gave us subsidy and so we have to pay taxes, and I think it’s better we review the taxes and leave the subsidies out of the equation.”
Mr. Manteaw explained current taxes slapped on electricity are likely to be from previous subsidies saying “…if you want to really give people relief, the place to tackle is the taxes. Do something about the taxes and we will all get the relief we desire.
“I do not think that subsidy is the way to go. A lot of times, subsidies have been used to deceive consumers but I think this time around consumers should rather demand reduction in their taxes and not subsidy.”
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By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin