Implementing VAT on electricity consumption will worsen the hardship on Ghanaians – Mahama

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John Mahama, the former president, has endorsed organized labor’s demand that the government remove the Value Added Tax (VAT) that is levied on electricity.

The National Democratic Congress (NDC) leader, Mr. Mahama, expressed concern that the introduction of a value-added tax (VAT) on electricity consumption would put additional strain on Ghanaians already experiencing financial hardship.

Mahama emphasized in a Facebook statement that the action would raise tariffs by almost 21% and have an impact on the cost of goods, services, and transportation. He pleaded with the government to change its mind and help the people of Ghana.

In addition, Mahama attacked the Akufo-Addo-Bawumia administration, claiming that as long as they are in power, Ghanaians will continue to endure hardship.

“Implementing VAT on electricity consumption will increase tariffs by almost 21% and exacerbate the hardship on Ghanaians. This will affect the prices of goods, services, and transport fares.”

“I agree with organised labour that the government must reverse its decision to start collecting VAT on electricity consumption.”



He called on the departing government to use caution and emphasized the need for the International Monetary Fund (IMF) to release the $600 million responsibly.

Upon taking office in January 2025, the NDC flag bearer pledged that the party is prepared and eager to tackle Ghana’s economic problems and offer significant relief to the people of Ghana.

He also spoke about his goal of using his 24-hour economy policy and other initiatives to generate high-paying jobs.

On Wednesday, the former president is expected to start a three-day #BuildingGhanaTour of the Ashanti Region, where he will meet with locals and hear their concerns.

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