Government Suspends 15% VAT on Electricity Consumption
The government has chosen to delay the implementation of the fifteen percent Value Added Tax (VAT) on electricity used for residential purposes in response to popular outcry.
The Northern Electricity Distribution Company and the Electricity Company of Ghana have received instructions from the Ministry of Finance to desist from enforcing the tax.
Wednesday, February saw the Ministry of Finance issue a press release that read, "On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagement with key stakeholders, including Organised Labour."
The Ministry highlighted the importance of engaging with various stakeholders to develop innovative and inclusive strategies to address fiscal challenges while enhancing economic resilience.
Despite this decision, Organised Labour has remained firm in its stance against the VAT implementation. They have threatened a nationwide demonstration scheduled for next Tuesday, February 13, emphasizing that only a complete withdrawal of the tax will prevent the protest from taking place.
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