Gov’t defends 15% VAT on electricity
Story: Business Desk
Government has justified the 15 percent VAT it is imposing on electricity consumption.
The government hopes to raise more revenue as part of its COVID-19 recovery programme, and as part of the measures taken, directed the imposition of VAT on electricity.
In a letter dated January 1, Finance Minister, Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to apply the VAT to residential customers exceeding the maximum consumption level for lifeline units.
Deputy Energy Minister, Andrew Agyapa Mercer said it was a difficult decision for the government, but it was necessary to do so to clear off debts owed to independent power producers.
“Obviously, if you look at the scope of the tax and what it is intended to do—raise revenue to meet some obligations of the government in the energy sector—it will interest you to know that, as we speak, as of July 2023, the amount of money that we owe to the IPPs alone is in the region of GH¢1.7 billion.”
People, including the Director of Business Operations at Dalex Finance, Joe Jackson, criticised the government’s decision to impose the VAT on consumers, describing it as harsh.
Kofi Kapito, the Chief Executive Officer (CEO) of the Consumer Protection Agency, also described it as ridiculous.
5 thoughts on “ ”
This move has sparked significant debate regarding its impact on consumers. slope game
Wow, the post was really amazing to be read. Thanks a lot for sharing it!
best io games
To keep the ball in the middle of the track in the slope game, you need to continuously adjust the direction of movement, avoid obstacles and maintain a stable speed.
I like the vibrant rhythm game fnf. It’s a lot of fun and thrilling to compete in music tournaments and test your musical sense in FNF.
Discovering the most challenging word in word games feels like you have just ascended Mount Everest! There is nothing greater!