Ghana Union of Traders Association (GUTA) has vehemently opposed the government's proposed implementation of Value Added Tax (VAT) on electricity charges and the introduction of an emission levy. In a press release issued on February 4, 2023, GUTA expressed serious apprehensions regarding the potential negative economic impacts these measures could inflict on businesses operating within the country.

GUTA contends that the proposed VAT on electricity charges would have direct and adverse effects on businesses, especially those heavily reliant on electricity for their operations. The association predicts that such businesses may face heightened financial strain, potentially leading to reduced production capacity, layoffs, and, in extreme cases, business closures, thereby hindering economic progress and stifling job creation opportunities.

The release also draws attention to the challenges presented by the emission levy, emphasizing concerns about double taxation and the current lack of infrastructure for electric vehicles, including charging stations and a reliable power source. GUTA highlights that Ghana already imposes energy taxes, such as the petroleum tax on gasoline, diesel, kerosene, and LPG.

Dr. Joseph Obeng, the President of GUTA, underscored the need for the government to reconsider these proposed measures and engage in extensive consultations with key stakeholders, particularly the business community, before implementing any new taxation policies.

"It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment," the communique stated.

As the government grapples with economic challenges and explores revenue-generation avenues, GUTA's opposition underscores the importance of striking a balance that promotes economic sustainability while addressing fiscal concerns. The call for inclusive dialogue with business stakeholders aims to ensure that any new policies are well-informed, considerate of business realities, and contribute positively to Ghana's economic growth.