Government has unveiled plans to introduce Value Added Tax (VAT) on residential electricity consumption exceeding specified lifeline levels, effective January 1, 2024.
This forms part of a strategic move to bolster revenue and align with the International Monetary Fund (IMF)-Supported Post Covid-19 Programme for Economic Growth (PC-PEG).
Under the Medium-Term Revenue Strategy, the decision is in accordance with Section 35 and 37, as well as the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870).
However, the exemption remains intact for electricity supplied to dwellings up to the maximum consumption level specified for block charges for lifeline units.
The government, in a statement, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to collaborate with the Ghana Revenue Authority (GRA) for the seamless implementation of VAT for residential customers exceeding the specified lifeline consumption level.
Read the full statement