The government of Ghana has begun the implementation of a value-added tax (VAT) on electricity tariffs, effective January 1st, 2024.
According to the Ministry of Finance's official statement, the implementation will affect “residential customers of electricity above the maximum consumption level specified for block charges for lifeline units in line with Sections 35 and 37, and the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870) has been scheduled for implementation, effective January 1, 2024.”
However, the VAT is still exempt for “a supply to a dwelling of electricity up to a maximum consumption level specified for block charges for lifeline units.”.
Additionally, the Finance Ministry further urged the Ghana Revenue Authority (GRA) to liaise with the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) for the transfer of collected revenue from the VAT implementation.
Kindly check out the statement below
