https://www.myjoyonline.com/no-new-levies-on-electricity-charges-gra-clarifies/-------https://www.myjoyonline.com/no-new-levies-on-electricity-charges-gra-clarifies/

The Ghana Revenue Authority (GRA) has come out to clarify issues surrounding the Value Added Tax (VAT), the Ghana Education Trust Fund Levy (GETFund), and National Health Insurance Levy (NHIL) on energy and capacity charges.

In a statement signed by the Assistant Commissioner of Communication and Public Affairs, Florence Asante, GRA assured the general public that the Authority does not seek to introduce any new or additional taxes on electricity charges in this era of coronavirus pandemic.

She added that the supply of electricity to a dwelling of up to a maximum consumption level specified by block charges for lifeline units is still exempted from VAT, NHIL and GETFund levy.

“ECG already charges VAT, NHIL, and GETFund levy on the supply of electricity in excess of lifeline units,” the statement read.

According to the statement, the letter which had begun the discussion surrounding the levies, “was to draw the attention of power producers in particular, to the VAT mechanism as it applies to the power sector and to get operators to invoice the supply of power to the ECG correctly.”

This was necessary because, “the ECG over the years has had some challenges claiming input VAT associated with the supply of electricity by power producers, which could have reduced the net tax payable by ECG to GRA.”

Thus the GRA is scheduling a meeting with power producers to address the application of the VAT mechanism to the power sector.

Meanwhile the GRA has withdrawn the letter dated May 4, 2020 on VAT, GETFund Levy and NHIL on Energy and Capacity charges.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.