Govt suspends 15% VAT on electricity

ā€¢ Mr Ofori-Atta

The government has suspended the implemenĀ­tation of the 15 per cent VAT on electricity consumption by residential customers.

According to the Ministry of Finance, the suspension had become necessary to enable the government engage key stakeĀ­holders particularly Organised Labour on the matter.

It said the government expected that those engageĀ­ments would birth innovative, robust and inclusive approaches to bridging the existing fiscal gap, while bolstering economic resilience.

The Ministry of Finance had written to the Electricity CompaĀ­ny of Ghana and the Northern Electricity Distribution CompaĀ­ny to suspend the implementaĀ­tion of the programme.

In a letter dated January 1, 2024, Finance Minister, Ken Ofori-Atta, directed the ElectricĀ­ity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDĀ­CO) to implement the VAT on electricity for domestic consumĀ­ers.

However, Organised Labour issued a statement on January 23, 2024 to kick against the impleĀ­mentation on VAT on electricity for residential consumers and threatened a nationwide-demonĀ­stration to show their displeasure about the programme.

In view of the opposition of Organised Labour to the impleĀ­mentation on VAT on electricity for residential consumers, the Ministry of Finance in January 30, 2024 issued a statement to acknowledge the concerns of Organised Labour.

In the Ministry of Financeā€™s press statement, it pledged that ā€œextensive dialogue will be held with Organised Labour and all stakeholders, including ECG and NEDCO, to exercise restraint to facilitate a constructive dialogue towards a quick resolution of the impasse.ā€

It said government was committed to working with all stakeholders in order to susĀ­tain the gains made under the Post-Covid 19 Programme for Economic Growth and engender macroeconomic stability and inclusive growth.

Ā BY CLIFF EKUFUL & KINGSLEY ASARE

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