Ministry of Finance Directs ECG and NEDCO to Halt VAT Implementation on Electricity Consumption

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In a press statement released by the Public Relations Unit of the Ministry of Finance, it was stated that the suspension of the VAT implementation is pending further consultations with key stakeholders, including Organised Labour.
In a press statement released by the Public Relations Unit of the Ministry of Finance, it was stated that the suspension of the VAT implementation is pending further consultations with key stakeholders, including Organised Labour.
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The Ministry of Finance has issued a press statement instructing the Electricity Company of Ghana, Ltd (ECG) and the Northern Electricity Distribution Company (NEDCO) to suspend the implementation of Value Added Tax (VAT) on electricity consumption for residential customers.

This directive comes as the Ministry seeks to engage key stakeholders, including Organised Labour, in further discussions on the matter.

SEE ALSO: National Service Will No Longer Be Mandatory -Dr. Bawumia

The Ministry of Finance had previously sent a letter to ECG and NEDCO on December 12th, 2023, addressing the issue of VAT on electricity consumption.

A subsequent press statement was released by the Ministry on January 30th, 2024, emphasizing the government’s stance.

SEE ALSO: GNAT Rallies Teachers for Nationwide Demonstration Against VAT on Electricity

In light of the ongoing engagements with various stakeholders, the Ministry of Finance has requested that ECG and NEDCO refrain from implementing the VAT directive until further notice.

The aim of these discussions is to foster innovative and inclusive solutions that would effectively address the existing fiscal gap while simultaneously enhancing economic resilience.

Read the Full Statement Below;
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