Some difficulties have to be checked with the law so I don’t think that it is time for people to panic, said, Mr Dubik Mahama
Mr Dubik Mahama, Managing Director for the Electricity Company of Ghana (ECG), has clarified that the new Value Added Tax (VAT) on electricity consumers beyond the lifeline threshold is not being charged yet, despite the issuance of the order for its implementation.
The Finance Minister, Ken Ofori Atta ordered the ECG and the Northern Electricity Distribution Company (NEDCO) to charge 15% Value Added Tax on electricity.
The notice, however, has drawn a massive outcry from the Labour Unions of the Trade Union Congress (TUC) leading to the issuance of a one-week ultimatum for the withdrawal of the imposition of the VAT.
Secretary General Dr. Yaw Baah at a press conference vehemently opposed the move, citing its detrimental impact on the livelihoods of ordinary Ghanaians, particularly pensioners and low-income earners.
But speaking on the Citi Breakfast Show on Thursday, January 25, the Managing Director of ECG, Mr. Dubik Mahama acknowledged that there are legal and operational challenges associated with the implementation of the new tax.
He added that his outfit is still in discussion with the Public Utilities Regulatory Commission (PURC) over the implementation of the VAT.
“It is on record, we have not implemented it, and we are not charging it,” Mr. Dubik Mahama said, adding, “There are some difficulties that have to be checked with the law so I don’t think that it is time for people to panic, it is not panic mode yet.
All of these things have to be cleared out, so the collection has not started, it is still a conversation going on.
