Government through the Finance Ministry has directed ECG and NEDCo to suspend the implementation of the proposed 15% VAT on electricity consumption.
The move to impose a tax on the consumption of electricity by residential customers has received stiff opposition from various quarters.
Organised Labour gave government January 31 ultimatum to withdraw the insensitive tax or face their wrath. The labour union has since scheduled February 13 to embark on a demonstration to register its displeasure with the policy.
However, the Ministry of Finance in a statement dated February 7, 2024, has asked the two entities (ECG and NEDCo) to suspend the tax measure while government continues to hold further engagements with stakeholders.
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“On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagements with key stakeholders including Organised Labour,” parts of the statement read.
The Food and Beverage Association of Ghana (FABAG) also described the tax measure as ”insensitive and anti-business.”
Meanwhile, the Finance Ministry is hopeful that its pending engagements would yield positive results to bridge the fiscal gap while strengthening businesses.
“The ministry expects that these engagements will birth innovative and inclusive approaches to bridging the fiscal gap while bolstering economic resilience,” it concluded.
Read the full statement below:
