Government officially suspends 15% VAT on electricity

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

Both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) have thus been directed by the Ministry of Finance to put the implementation of the levy on hold.

This was contained in a press statement issued by the Ministry of Finance on Wednesday, February 7, 2024.

The suspension according to the Ministry is to allow for extensive dialogue and also to get the buy-in of industry players and labour unions following the grave concerns raised about its impact on consumers and businesses.

The GEA will continue to dialogue with Government in ensuring that the interest of businesses is protected with regards to the proposed levy. Members will be updated on further developments on this issue in due course.