Nana Amoasi VII, the Executive Director of the Institute for Energy Security (IES), expresses apprehension regarding the imposition of VAT on electricity tariffs, foreseeing heightened challenges in power outages and potential deterrence for investors in the sector.
The Ministry of Finance, In a statement released on December 12, 2023, declared the enforcement of Value Added Tax (VAT) on residential electricity customers surpassing a specified consumption threshold for lifeline units, effective January 1, 2024.
The decision, in alignment with the Value Added Tax Act of 2013, forms part of the Government’s Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Programme for Economic Growth (PC-PEG).
During an interview on Eyewitness News monitored by Nana Ama Nyamekye, Nana Amoasi VII argued that the introduction of VAT would impose an additional burden on electricity consumers, potentially dissuading investors and leading to unauthorized practices such as theft within the sector.
