Government succumbs to pressure; suspends controversial 15% VAT on electricity

The government has suspended the planned implementation of the 15 percent Value Added Tax (VAT) on domestic consumption of electricity.

The Ministry of Finance has consequently instructed the Electricity Company of Ghana and the Northern Electricity Distribution Company 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.

"On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagement 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."

Meanwhile Organised Labour, which has threatened a nationwide demonstration against the implementation of the policy, had warned that nothing short of a total withdrawal of the tax will avert the demonstration planned for next Tuesday, February 13.

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Electricity

Government

VAT