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According to reports, the government decided against enforcing the Value Added Tax (VAT) of 15% on electricity.
There are rumors that this decision, which exempts customers from the new tax on electricity bills, resulted from a cabinet meeting on February 2, 2024.
Additionally, the New Patriotic Party shared it on its handle on X, formerly known as Twitter.
According to sources, the Trade Unions Congress (TUC) and other stakeholders fiercely opposed the government’s decision to remove the electricity VAT.
Though the policy was initially approved by Parliament as well as Cabinet, the strong opposition has forced a review of it.
Now that the decision to remove the electricity VAT has been made, the government will hold talks with the International Monetary Fund (IMF) to come to an agreement on compensatory measures for the expected revenue shortfall.
Although the final decision on the policy is still up in the air, insiders speculate that, following discussions with the IMF, it may be drastically scaled back or abandoned completely.
“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,” reported Asaase News.
On February 13, 2024, Organized Labor had scheduled a nationwide protest to demand that the government revoke the order imposing a 15% value-added tax on residential electricity usage.
Additionally, the labor organizations have declared that they will wear red bands to work from February 5 to February 13 and have alluded to the potential for a national walkout in the event that the VAT directive is not rescinded following the protest.
Source: Ghanatodayonline.com
