The planned implementation of the 15 percent Value Added Tax (VAT) on domestic consumption of electricity has been suspended officially by the government.
Both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) have thus been directed by the Ministry of Finance to put the charging of the levy on hold.
This was contained in a press statement issued by the Ministry of Finance on Wednesday, February 7, 2024.
The suspension according to the Ministry is to allow for extensive dialogue and also to get the buy-in of industry players and labour unions following the grave concerns raised about its impact on consumers and businesses.
Government had directed the imposition of the tax policy on electricity customers above the maximum consumption level specified for block charges for lifeline units, from January 1, 2024, to support the country’s Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Program for Economic Growth (PC-PEG) with the aim to mobilize revenue.
But this was much to the opposition of various interest groups that viewed it as not only punitive but a poorly-thought-through directive.
Meanwhile the majority leader Osei Kyei Mensah Bonsu has justified the government’s decision to impose 15% VAT on electricity despite concerns raised by various stakeholders about the potential negative impact on businesses and the economy.
Osei Kyei Mensah said the taxes needed to run the country.
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Story by: Osei Akoto(Teacher Kojo) #Ahotoronline.com
