The government has suspended the implementation of the 15 percent Value Added Tax (VAT) on domestic electricity consumption.
In view of this, the Ministry of Finance has directed the Electricity Company of Ghana(ECG) and the Northern Electricity Distribution Company(NEDCo) to put the charging on hold.
A statement issued by the Ministry of Finance on Wednesday, February 7, 2024, explained the suspension is pending stakeholder engagement.
“On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagement with key stakeholders, including Organised Labour.
“The Ministry expects that these engagements will birth innovative, robust, and inclusive approaches to bridging the existing fiscal gap while bolstering economic resilience,” the statement read in parts.
Meanwhile Organised Labour, which has threatened a nationwide demonstration over the levy has warned that nothing short of a total withdrawal will avert the protest set for next Tuesday, February 13.
Read the full statement below: