Government officially suspends controversial 15% VAT on electricity

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.

“On behalf of the government, the Ministry would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagements with key stakeholders including organized labour”, portions of the statement read.

 

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