HomeNewsLocal NewsGovernment begins implementation of VAT on Electricity Tariffs

Government begins implementation of VAT on Electricity Tariffs

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The government of Ghana has begun the implementation of Value Added Tax (VAT) on electricity tariffs effective January 1st, 2024.

The Ministry of Finance in a statement said 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 1st January¬†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”.

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.

Full statement below:

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