Myjoyonline.com reported recently that the government has requested the Ghana Revenue Authority (GRA) to liaise with the two power distribution companies to transfer Value Added Tax (VAT) generated from consumers who have exceeded their lifeline power consumption.
The website, quoting from a release issued by the Finance Ministry said the sector Minister, Ken Ofori-Atta, had directed that the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) work with GRA to implement VAT on households that have consumed power above the maximum consumption level specified for block charges for lifeline unit, effective January 1, 2024.
“The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) are, hereby, requested to liaise with the Ghana Revenue Authority (GRA) to ensure that the implementation of VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units takes effect on January 1, 2024 in line with Section 35 and 37 and the First Schedule (9) of Act 870,” Ofori-Atta was quoted as saying.
From the above statement, it is clear that the government is seeking to raise more revenue for national development. It is, however, important to note that revenue mobilisation goes in tandem with productivity. Unfortunately, the unbearable traffic situation, especially in our national capital, Accra, appears to be affecting our overall productivity, but as a nation, we have not taken notice of that.
The government cannot derive maximum taxes from the people if their productivity levels are low. It is an undeniable fact that it takes long hours for government and private sector workers to reach their places of work, especially during the morning rush hours.
Europe, America and China, which have been helping to sustain our economy through various grants and loans, noticed years ago that without productivity, the income will not be there for the people to pay their taxes. They, therefore, decided to construct both surface and underground rail lines to ensure fast movement of the citizens.
Unfortunately, Ghana as a country, has not got the resources to construct intra city rail lines, let alone that of underground. This does not, however, mean that we should give up – a solution must definitely be found to the problem – to make transportation easy for the urban dwellers who contribute the bulk of our Gross Domestic Products (GDP).
In our opinion, water transport can relatively be cheaper and affordable by the government, if she is desirous in investing in it. In Accra for instance, majority of the workers are staying at the outskirts of the national capital and commute from there to the centre of the city every day.
The Chronicle, therefore, suggests that government should look for funds to construct small landing bays along the coast of Accra – from Tema to Gomoa Fetteh.
When this is done, the government can invite investors to invest in the acquisition of small boats to ferry workers from Kasoa and its surrounding towns, and that of Tema enclave to Accra. When this project is successfully executed, all what the commuters needed to do is to take a taxi or trotro to the beach and join the boat to ferry them to Accra Central.
We must insist that that this should be a private led initiative; with the only role of the government to construct the landing bays along the coast for these boats to offload and take on new passengers to the various destinations. The successful implementation of the project will also ease traffic on the Accra-Tema and Kasoa roads.
Accra is gradually becoming a city-state and if proper measures are not put in place, productivity will nose-dive and this will have serious repercussions on our national economy.
