The government is set to drop the 15 percent value-added tax (VAT) on electricity.
This decision, according to reports, was reached at a Cabinet meeting held on Friday, February 2, 2024.
According to Asaase News in Accra, a court in Cabinet stated that "the position currently is that the 15% VAT on electricity is off, and it is likely it could either be off totally or significantly slashed."
This implies that electricity users won't have to pay the contentious 15% VAT on top of their bills any longer.
However, the government also agreed to initiate a conversation with the International Monetary Fund (IMF) to come to a consensus on how it can make up for the revenue shortfall occasioned by the decision to drop the VAT on electricity policy through some extra cuts in spending.
Additionally, organized labor has set Tuesday, February 13, 2024, to hold a massive protest to push the government to withdraw the directive to ECG and NEDCO to implement the 15% VAT on residential electricity consumption.
