The government has directed the implementation of VAT for electricity customers who have exceeded their lifeline power consumption, effective January 1.
The Ghana Revenue Authority (GRA) has thus been asked to direct the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to impose the tax.
“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 I” January 2024, in line with Section 35 and 37 and the First Schedule (9) of Act 870″ the Finance Ministry said in a statement.
By this, the incidence of the 15 percent VAT on electricity for consumers in the 31-300 tariff category will now be GHp 161.6580/kWH compared to the previous cost of GHp 140.5722/kWH.
Those within the 301-600 bracket will no longer pay GHp 182.4354 but rather GHp 209.8007/kWH.
Consumers outside the 600 band will pay GHp 30.4059 more to the GHS 202.119/kWH previously paid.