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Slash taxes on tariffs to relieve consumers – Edward Bawa to gov’t

Member of Parliament for Bongo, Edward Bawa wants government to reduce taxes placed on utility tariffs.

Edward Bawa says the elements of taxes placed on tariffs push the prices consumers have to pay upwards.

Reacting to the demands by utility providers for an increase in tariffs on The Big Issue on Citi TV/FM, the former Head of Communications at the Energy Ministry argued that if the taxes are removed, consumers will be relieved.

“Government should start looking at the burden it puts on the tariffs. If government is able to reduce the taxes placed on the tariffs, bearing in mind that citizens are already burdened by the economy, there could be a conversation on the reduction of the prices.”

The Electricity Company of Ghana had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.

The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.

The Ghana Water Company is also proposing an increment in its tariffs to be able to at least recover its operational cost.

Some observers have said the amount consumers pay for electricity is woefully inadequate to sustain the operations of the ECG.

These proposed increments are coming at a time of great controversy over the high cost of living and worsening inflation.

But the service providers maintain that the increment is necessary to keep them afloat.

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