Government has suspended the planned implementation of the 15 percent Value Added Tax (VAT) on domestic consumption of electricity.
A statement issued by the Ministerof Finance on February 7, 2024, instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to suspend the charging.
This move, the Ministry explained is to allow for extensive dialogue and support by trade unions after a section of the public particularly Organise labour expressed its opposition to the tax.
“On behalf of the government, the Ministry would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagements with key stakeholders including organized labour”, parts of the statement read.
Organized Labour had intended to embark on nationwide demonstration on February 13, 2024, in demand of the government to withdraw the directive to implement the 15% VAT on residential electricity consumption.
