Reduction of taxes on tariffs will relieve burden on consumers – Bawa advocates
Edward Bawa is MP for Bongo
ECG proposes 148% increase in electricity tariffs
Read full articleGWCL demands increase in water tariffs
Increase in tariffs burdening Ghanaians,Edward Bawa
The Member of Parliament for Bongo, Edward Bawa, has stated that if government moves to reduce taxes on utility tariffs, consumers will be relieved of the burden.
According to him, the elements of taxes that are imposed on tariffs cause prices to shoot up, therefore burdening consumers.
Speaking to CitiNews on the back of increased tariff proposals the legislator said, “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 is demanding an increment of 148% on electricity tariffs from August 2022.
The company submitted a proposal to the Public Utilities Regulatory Commission (PURC) asking for an adjustment in electricity tariffs to cover the period between 2019 and 2022.
ECG also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC) while attributing the high increase in the Distribution Service Charges to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects.
“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026. The high increase in the DSC1 for the year 2022 could be attributed to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects”.
The Ghana Water Company is also demanding an almost over 300% increment in water tariffs, a situation the company says has become necessary due to increase in its operational costs.
