The Ministry of Finance has announced the suspension of the implementation of 15 percent Value Added Tax (VAT) on domestic consumption of electricity.
In a statement from the ministry dated Wednesday, February 7, the suspension 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.
“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”, the release stated.
The ministry therefore, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to suspend the charging of the levy until further engagements with key stakeholders are done.
“The Ministry expects that these engagements will birth innovative, robust, and inclusive approaches to bridging the existing fiscal gap, while bolstering economic resilience”, the Ministry’s release concluded.
Since announcing the tax in January, various pressure groups and organized labour have kicked against it indicating that it’s implementation will further cripple individuals in these hard times.
See statement below
