Govt to impose VAT on residential consumers
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For Immediate Release
10th January, 2024
GOVERNMENT TO IMPOSE VALUE ADDED TAX (VAT) ON RESIDENTIAL ELECTRICITY CONSUMERS.
The Akufo-Addo/Bawumia led government has taken taxation to another level by deciding to charge VAT on residential electricity consumption.
It must be made abundantly clear that residential usage of electricity has always been considered a social good and has always been exempted from VAT.
In the wake of the ever increasing economic hardships, the government through the Ghana Revenue Authority (GRA), has directed all electricity and power-producing companies to apply the GETFund Levy of 2.5%, NHIL 2.5% and VAT rate of 12.5% on the value of the energy they supply to residential consumers. This can be classified as a fresh tax that will add extra burden to consumers.
By this, consumers must prepare to pay more for the electricity they consume in the coming days. Without any shred of doubt, the introduction of this new tax has been occasioned by the IMF conditions imposed on Ghana.
-John Abdulai Jinapor (MP)
Ranking Member (Mines and Energy Committee)
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