Government suspends 15% VAT on electricity
A statement issued by the Ministry of Finance on Wednesday (7 February) said the suspension is to pave the way for engagement on the policy with labour unions
The Ministry of Finance has directed the Electricity Company of Ghana Ltd (ECG) and the Northern Electricity Distribution Company (NEDCo) to suspend implementation of a directive to charge a 15% value added tax (VAT) on electricity.
Organised labour has scheduled next Tuesday (13 February) to embark on a nationwide demonstration, should the government fail or refuse to withdraw the directive it issued for the Ghana Revenue Authority (GRA) and power distributors to implement the 15% VAT charge on electricity.
A statement issued by the Ministry of Finance on Wednesday (7 February) said the suspension is to pave the way for engagement on the policy with the labour unions.
“Reference is made to the Ministry of Finance’s (MoF) letter to the Electricity Company of Ghana Ltd (ECG) and the Northern Electricity Distribution Company (NEDCo) on the above subject dated 12th December 2023, as well as MoF’s press statement on the subject issued on 30th January 2024.
“On behalf of the government, MoF would like to inform ECG and NEDCo to suspend the implementation of the VAT directive pending further engagements with key stakeholders including organised labour.
“The ministry expects that these engagements will birth innovative, robust and inclusive approaches to bridging the existing fiscal gap while bolstering economic resilience,” the statement said.
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