The Value Added Tax (VAT) of 15% on energy will no longer be applied by the government. It has been reported that a cabinet meeting on Friday, February 2, 2024, made this decision.
According to a court in Cabinet, “the position currently is that the 15% VAT on electricity is off, and it is likely it could either be off totally or significantly slashed,” as reported by Accra-based Asaase News.
This implies that the contentious 15% VAT will no longer have to be paid by electricity users on top of their bills.
The administration will discuss ways to make up the money lost by eliminating the value-added tax on energy in discussions with the International Monetary Fund (IMF).
To close the revenue shortfall, they want to agree to more budget reductions. In addition, a large-scale demonstration is planned by Organised Labour for Tuesday, February 13, 2024.
They demand that the government revoke the directive instructing NEDCO and ECG to tack on a 15% VAT on residential power bills.
The goal of the demonstration is to pressure the government to reverse this choice and spare citizens from having to pay more for power.
