Energy Analyst Dr. Yusif Sulemana has described government’s decision to introduce Value Added Tax(VAT) on electricity tariffs as counter-productive.
He warns that the move could deny many people access to electricity.
The Ministry announced that government has introduced VAT on specific section of electricity consumers in the country.
However, Dr. Yusif Sulemana in an interview with Starr News predicted that extra cost will be detrimental to the sector.
He warned government to focus on rectifying energy leakages.
”The same people who are buying petrol at quite appreciable prices at the pump are the same people paying water and electricity bills. So, if you look at that holistically, that will impact the expenditure in terms of energy bills and at the end of the day we can subject the populace to what we normally call energy poverty and if energy poverty ensues that will be detrimental to the entire economic growth.”
Dr. Yusif Sulemana added: ”I think at this moment in time, we have to stop knee jerk reaction but be innovative by looking at where we can propel economic growth. Any attempt in terms of taxation to earn revenue it will be anti-people policy. The best government can do is to just leave it as it is and then look at innovative ways of blocking leakages that we have within the system. ECG, they are already taking some steps to ensure that they avoid leakages through this smart meter system.”
Source: Kasapafmonline.com/102.5FM
