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Govt suspends VAT on electricity consumption by residential customers

By Joyce Adwoa Animia Ocran, ISD || contributor
Economy & Investments Govt suspends VAT on electricity consumption by residential customers
THU, 08 FEB 2024 LISTEN

The Ministry of Finance (MoF) has directed the Electricity Company of Ghana, Ltd (ECG) and the Northern Electricity Distribution Company (NEDCO) to suspend the implementation of the Value Added Tax (VAT) directive on electricity consumption by residential customers.

A press release from the Ministry of Finance stated that the decision comes in the wake of the MoF's letter dated 12th December 2023 and a subsequent press statement issued on 30th January 2024.

“On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagements with key stakeholders including Organized Labour,” it added.

According to the statement, the Ministry expects that these engagements will birth innovative, robust, and inclusive approaches to bridging the existing fiscal gap while bolstering economic resilience.

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