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Meanwhile the GRA has withdrawn the letter dated May 4, 2020 on VAT, GETFund Levy and NHIL on Energy and Capacity charges.
Latest Stories
-
Court sentences man to life imprisonment for murdering girlfriend; daughter
13 mins -
Bawumia’s $80 bn value claim for Spotify, false – Dubawa
24 mins -
GBA President calls for transparent and fair December election
39 mins -
November 8 not a public holiday – Interior Ministry
42 mins -
Policies the Church can promote to ensure every birth by a congregant is wanted, not unintended
45 mins -
Next NPP government to build new AG offices in all regions – Godfred Dame
1 hour -
Why corporate leadership can no longer be silent on sustainability
1 hour -
The Keeper’s Music unveils Neyty with new single ‘Most High God’
1 hour -
Bawumia outlines 8 initiatives to create 4 million jobs for youth if elected president
1 hour -
Over 4,000 unpaid teachers demand payment of 16 months arrears from government
2 hours -
I’ve apologised to Gloria Sarfo over flight issues – AMAA Country Director
2 hours -
Ghana nearly lost $9 billion to arbitrary claims in last four years – Attorney General
2 hours -
FWSC responds to CLOGSAG strike declaration, urges return to negotiation
3 hours -
Members contribute to ‘transport’ national team – Volleyball Vice President laments financial struggles
3 hours -
New SHS curriculum provides adaptive learning pathways – EduWatch
3 hours