- IMF suggests government may reintroduce 15% VAT on electricity if inflation continues to decline
- VAT on electricity was initially paused due to public backlash, especially from residential consumers
- VAT on residential electricity was part of revenue-generating measures under IMF-supported COVID-19 recovery efforts
- Government suspended VAT implementation after Organised Labour threatened nationwide demonstration
- Annual inflation decreased to 20.9% in July, lowest rate in 28 months
- Possibility of reintroducing VAT on electricity remains as inflation slows
- IMF indicates government likely to move forward with VAT policy once inflationary pressures ease
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.
