Pulse logo
Pulse Region

Gov't charging VAT on electricity from January 1

The Finance Minister, Ken Ofori-Atta, has instructed the Ghana Revenue Authority (GRA) to collaborate with the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) in implementing a value-added tax (VAT) on residential customers exceeding the specified lifeline power consumption.
Finance Minister, Ken Ofori-Atta
Finance Minister, Ken Ofori-Atta

Effective January 1, 2024, the GRA is tasked with overseeing the VAT implementation in accordance with Act 870, Sections 35 and 37, and the First Schedule (9).

Additionally, the GRA is directed to coordinate with ECG and NEDCO for the transfer of collected revenues as part of domestic VAT collections.

A release issued by Ofori-Atta said the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) are, hereby, requested to liaise with the Ghana Revenue Authority (GRA) to ensure that the implementation of VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units takes effect on January 1, 2024, in line with Sections 35 and 37 and the First Schedule (9) of Act 870.

"By a copy of this letter, GRA is requested to ensure that it liaises with ECG and NEDCO for the transfer of the revenues collected from the implementation of VAT on the subject matter as part of its domestic VAT collections," the December 12, 2023, release read.

Next Article