The Vice President of the Republic, Dr Mahamudu Bawumia, has rejected claims by the opposition NDC that the Akufo-Addo Government is, contrary to its promise while in opposition, is increasing electricity tariffs rather than reducing them.
The Public Utilities Regulatory Commission (PURC) announced a 5.6 per cent increase in electricity tariffs on Monday 30th September, 2019, leading to claims by the opposition that Government had mismanaged the electricity sector, hence the “unprecedented” increase.
But speaking in Accra on Wednesday 2nd October, 2019 Vice President Bawumia insisted that available records do not support the NDC claim, and a comparative analysis of the records would clearly show which party has burdened Ghanaians with high electricity tariffs.
The Nana Akufo-Addo government, the Vice President maintained, had kept faith with Ghanaians and had for the first time in Ghana’s history, cumulatively reduced tariffs since assuming office on January 7, 2017.
“You would have heard that the PURC has increased electricity tariffs by 5.6 per cent. It is very very important for us to have some perspective on this, because electricity has a bearing on the cost of doing business and you have to be having your eye on it so that we don't overburden businesses.
“What was the situation before we came into office? I'll give you a background. In 2010 the average increase in electricity was 89 per cent; 2011 was 10 per cent; 2013 was 78 per cent; 2014 was 28.3 per cent; 2015 was 59.2 per cent. Between 2013 and 2016, just the last four years of the NDC government, the cumulative increase in electricity tariff was cumulatively 166 percent.
“It is against that background that we said ‘this is not good for job creation’. If you want to create jobs you have to reduce the burden of electricity tariffs on our people. And this is why when we came in - and it had never been done before - that we reduced electricity prices for businesses by 30 per cent and for households by 17.5 per cent; average of around 22 per cent in 2018.
“Notwithstanding that, earlier this year in July there was an increase in electricity prices of 11 per cent and yesterday of 5.6 per cent. When you take the total cumulative increase on average, between 2017 and today you have a cumulative decrease of about 5 per cent.
“The NDC in their last four years increased tariffs by 166 per cent; increase. We have come down since we've been in government by about 5 per cent. So it is still boot for charlie wate when you come to electricity tariffs.”
Vice President Bawumia emphasised that Government has undertaken a number of far-reaching reforms and also either reduced or abolished a large number of taxes to further ease the cost and hassle of doing business. Some of these measures include automation of the construction permit system, automatic of the application for business operating permit, various reforms at the Registrar General’s department, paperless port systems, etc.
The Vice President further outlined the various direct tax and import duty reductions so far implemented by the Government. “In 2017, we reduced or abolished 17 nuisance taxes. In particular, we:
o Abolished excise duty on petroleum
o Reduced special petroleum tax rate from 17.5% to 15%.
o Abolished the 1% Special Import Levy
o Abolished the 17.5% VAT/NHIL on domestic airline tickets
o Abolished the 17.5% VAT/NHIL on financial services
o Abolished the 17.5% VAT/NHIL on selected imported medicines, that are not produced locally
o Abolished the 5% VAT/NHIL on Real Estate sales
o Abolished import duty on the importation of spare parts.
o Reduced National Electrification Scheme Levy from 5% to 3% and
“In addition to these import duties were reduced by about 50% in April 2019”, he continued.
Today, Ghana is one of the fastest-growing economies in the world and thanks to initiatives like 1D1F and planting for food and jobs, we have shifted from a focus on taxation to a focus on production.
Source: Peacefmonline.com
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the previous government is far better enkwasiasem somebody suspected his worker for stealing and you beat the person shamelessly, another person kidnap two 3 kids and you waited for one year only to find out the murder of the kids.
The kidnappers are looking for you. That must be your major concerned.
Almost all the commentaries are just plainly insulting the vice prez. He put out figures and drew conclusion. Debate the figures and challenge him and stop the cheap shouting of "liars, liar". Let's make informed comments. Is it true that the govt reduced electricity, is it true the points about the tax reduction?
You baumia, you have no shame because you wake up and eat Tuozaffi and filled your Haram stomach so you cant see the lies you peddle to deceived Ghanaians. I have never seen a broad day light Moslem like you, a Lyer. Wait Allah is waiting for you. Uppon all your economics preaches you cant show nothing to Ghanaians. Faith, You and Your Boss with nothing to Show with our Taxpayers money have kept Faith with your families and your npp corrupt member. Ghanaians are not STuuuppiid)))
Yes you are right, Akufo Ado has kept faith by enriching himself, family and friends. When you have nothing to show you stup1li compare. MOst of you Nothern politicians are a disgrace to the nation. The forex fundamentals have exposed you big time. My grand mother in makola is wise and better in economics than you.
Ghanaians are not backward people or cannot determine their current harsh conditions. You can lie your way to power, cheap propaganda cannot sustain u in power forever. Look at Borrowmia now resorting to percentage increment.My goodness. No more rent and electricity bill comparison. The kitchen is too hot. Kitchen knives or chicken knives are now weapons for coup making. A government that is not performing well will get scared off "Bentua"" and sees ""Bentua"" as acid bottle or weapon to stage coup in Ghana. During Mahama regime, new power generations plants came on board, namely Ameri karpower,Aksa,Cenit,Bxc,Meienergy,Safisana largely from thermal sources.These were high capital investment into generation mixed needed to be paid for gradually by the consumer in the form tariff adjustment. These gent sets were using largely HFO and aviation fuel at high cost. Atuabo gas was then under development during Mahama. Go to PURC website within Mahama 4 yrs,major tariff went up in Dec 2015 and came down in June 2016 as result realignment of tariff bands. Let The Dr Bawuliar provide data on electricity pricing to justify his Dubious and mischievous calculations. READERES CAN SIMPLE CHECK THE FACTS FROM PURC WEBSITE. LAZILY, DR BAWULIAR simply took end user tariff in 2008 compare end user tariff in 2016. A period of 8yrs span. Then mischievously compare QUARTERLY /4 months incrementally jump with 96months/ 8yrs. In 2016 ,we were told electricity was not affordable. More than a rentals. Granted, How come a electricity prices/value which was deemed to be too expensive than a rent should have a blessing of two increments in July 2019,October 2019 within 3 months even in the era of cheaper gas from Atuabo Gas. Ghanaians can mo longger fall for the impotent and incompetentt Dr Boroowliar.Enough of Bawumia ''kaassaa Dee'' enough of the cheap rhetoric, lies and half baked and uncoordinated lies. Ghanaians were expecting the vice president to tell us cost of a gallon of petrol,fan milk,yoghurt, kalipo prices,Expensive taxes on data,credit transfer,percentage increases in bribery at ""Julorbii" jubilee house. According to Benjamin Disaralie,there are three kinds of lies: LIES,DAMMED LIES, and STATISTICAL LIES. Dr Bawuliar belongs to the latter. STATISTICAL LIAR. He should compare rent and electricity prices. Now changing the barometer. What a liarlist vice president. #CHANGE THE BAWULIAR
If I were you, I will be thinking about why some group of soldiers teamed up with civilians and decided to kidnap you and your weed smoking president. I you know the anger in some Ghanaians against you, you will be fasting and praying instead still doing propaganda.
PEOPLE LIKE YOU WHO HAVE NO BASIC UNDERSTANDING OF ELEMENTARY ECONOMICS WOULD CONCLUDE THAT BAWUMIA AND HIS ECONOMIC MANAGEMENT TEAM HAVE FAILED GHANAIANS. THOSE WHO MANAGED THE ECONOMY VERY WELL SENT AS TO IMF BEGGING FOR RELIEFS AND SUPPORT. WHICH GOVERNMENT TOOK US OUT OF THE IMF? IF YOU HATE A HARE NOT ITS SPEED. VERY IRONICAL.
here we go again ....bawunomics as usual ....u have failed us and now u want to justify ur failure by another party's failure....
BAWUMIA YOU HAVE NO CREDIBILITY AS VP IN GHANA STOP YOUR CROCODILE NOICE. THE MOST ***barred word*** VP EVER HAD IN HISTORY OF GHANA.