Mahama backs call for scrapping of VAT on electricity tarrif
This comes on the back of a communication from the Finance Ministry directed to both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO), to charge VAT on Electricity
Former President John Mahama has backed calls for the government to reverse its decision to start charging VAT on electricity consumption.
This comes on the back of a communication from the Finance Ministry directed to both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO), to charge VAT on electricity.
The Value Added Tax (VAT) will be applicable to residential electricity customers exceeding the designated maximum consumption level specified for block charges associated with lifeline units.
However, in Facebook post on Wednesday (24 January), Mahama said the move will increase tariffs by almost 21% and exacerbate the hardship on Ghanaians.
“Under normal circumstances, the release of US$600 million by the International Monetary Fund (IMF) to the government should provide relief to the already overburdened and suffering Ghanaian. It is, however, evident that Ghanaians will continue to suffer as long as the Akufo-Addo-Bawumia and NPP remain in office.”
“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,” Mahama said.
Reporting by Fred Dzakpata in Accra
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