Suspend 15% VAT On Electricity- Finance Ministry Tells ECG

The government has officially suspended the planned implementation of the 15% Value Added Tax (VAT) on domestic consumption of electricity.

In a press statement issued by the Ministry of Finance on Wednesday, February 7, 2024, both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) were directed to halt the charging of the levy.

The decision to suspend the VAT implementation was made to allow for extensive dialogue and to obtain input from industry players and labor unions. Concerns had been raised about the potential impact of the tax on consumers and businesses, prompting the need for further consultation.