Employment and Labour Minister, Haruna Iddrisu has revealed that the new increment in taxes and tariffs is just a means by which government seeks to solve the country’s economic problems, including fixing the power crisis.
“It is important that the Ghanaian public appreciates why government has had to take those difficult but necessary decisions to stabilize the economy and to fix the energy crisis and to prevent it from relapsing into a deeper crisis.
“Government currently has an outstanding debt, which was part of the report the Minister of Finance submitted to parliament which are all within the energy sector. And therefore the energy sector levy introduces among others a price stabilization adjustment which will allow government to deal with the 4.5 billion outstanding debt,” he said in an interview with the media after a meeting with Organized Labour over the tariffs ended in a deadlock.
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Ghanaians have described the recent fuel prices increases as well as the increment in taxes as harsh and insensitive.
But the Employment Minister said any attempt to reverse the increased utility tariffs and any of the new taxes will negatively affect government’s ability to fix the energy crisis.
He argues that Ghana is bedeviled with an outstanding debt of some 4.5 billion cedis which needs to be settled hence government’s decision to introduce the new Energy Sector levy.