- The government has imposed a Value Added Tax (VAT) on a specific section of electricity consumers in Ghana.
- The VAT will apply to residential electricity customers above the maximum consumption level specified for block charges for lifeline units.
- This move is part of the government’s Covid-19 recovery program and took effect from January 1, 2024.
- The government aims to generate revenue through this initiative and support the country’s Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Program for Economic Growth.
- VAT will remain exempt for electricity supply to a dwelling up to a maximum consumption level specified for block charges for lifeline units.
- The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) are requested to collaborate with the Ghana Revenue Authority (GRA) to ensure the effective implementation of VAT.
Source: citinewsroom.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
