Finance Minister, Ken Ofori-Atta has discredited persons who have said the government’s electricity reliefs for life-line consumers, water and other tax reliefs are baits to win Ghanaians’ votes in the upcoming 2020 general elections.
He justified the government’s decision although the country’s revenue has experienced major shortfalls as a result of the coronavirus pandemic.
While speaking in an interview, Mr. Ofori-Atta refuted claims that the government is falling on these relief packages to amass votes in the upcoming elections.
In the Finance Minister’s explanation, he said the government’s decision to go ahead with the electricity reliefs for life-line consumers and water and other tax reliefs is part of measures to further ease the burden of Ghanaians in these difficult times facing the country.
Adding that the government cannot afford to “kill the spirit of the people” despite the constraints of the COVID-19 pandemic, hence the need for these social interventions. Adding that it was his government’s responsibility to cushion Ghanaians.
“There are two things that you will need given the mandate- first of all, you can’t be complaining about the problems, because you were voted to solve that. Secondly, you can’t kill the spirit of the people because that is so fundamental.
“My responsibility is to find ways to which I can cushion people. There is some real poverty going on, in a land where some of 90% work in the informal sector, I need to intervene. I need to save lives and that builds trust and gets everybody in the same boat to move forward.
“The issues of lives and the dignity of the person and livelihood trumps a lot of things,” the Minister added.
About the relief package
While Ken Ofori-Atta was presenting the 2020 Mid-year budget review on the floor of Parliament, he announced another three months of free water supply and electricity relief as part of efforts to headrest Ghanaians against the hardship caused by the Coronavirus pandemic.
In his words, he said, the government decided to extend the utility reliefs “because we put the concerns and aspirations of the ordinary Ghanaian first.”
Earlier, the government made water services free with electricity tariffs slashed from April to June 2020.
The government took full responsibility of water bills for all Ghanaians for three months following the institution of restrictions on public gatherings and subsequently, partially locking down of Accra, Kasoa, Kumasi and Tema as part of measures to prevent further spread of the virus. Additionally, the decision was to help the government test, isolate and treat persons who were found to have contracted the virus.
Energy Minister, Mr John Peter Amewu also announced that the free and discounted electricity provided to Ghanaians for the three months (April, May and June) was going to cost the government a cumulative amount of about Gh¢1 billion.
‘Talk tax’ reduction takes effect in September 2020 – Akufo-Addo
Meanwhile, the government says the implementation of the new rate for the Communication Service Tax (CST) also known as talk tax will take effect from September 2020.
While addressing Ghanaians on Sunday, July 26, 2020, on measures taken by the government against as the country battles COVID-19, President Nana Akufo-Addo indicated that the move will be rolled out in September.
In his words, he said:
“The Communication Service Tax has also been reduced from 9 per cent to 5 per cent, effective September 2020.”
