Withdraw 18% VAT on electricity now – Minority tells gov’t

The Minority in Parliament has demanded the immediate withdrawal of the 18% tax on electricity to ease economic impact of the crippling COVID-19 pandemic.

Their demand comes after the Ghana Revenue Authority slapped an 18% Value Added Tax (VAT) on domestic consumers.

That directive was contained in a letter dated May 4, 2020, Accra-based Citi FM has reported.

Electricity for domestic consumers has been zero-rated for VAT since 2001, the Minority said in an address to reporters in Parliament.

The government has absorbed electricity bills for three months – April, May and June – as part of reliefs to cushion consumers in coronavirus times.

But the Minority spokesperson on Mines and Energy, Adam Mutawakilu has insisted the government is taking it back with another hand.

“You can’t promise them something on one hand and take it back with the other hand,” he said.

“Many people even with the 50% rebate are still finding it difficult to pay for the cost of electricity because most of them are now unemployed. But the president does not care and therefore….we are asking the president to ensure that this do not apply.”

“President Akufo-Addo should not be the first president to impose VAT, GETFund levy, NHIL levy on Ghanaians. I call on the president as a matter of urgency to withdraw it just for Ghanaians to enjoy the rebate he promised them,” he stressed.

The Damango MP warned that the new directive if implemented would increase the cost of electricity and bring unbearable hardships.

Gov’t to absorb electricity bills of vulnerable, 50% subsidy for others – Akufo-Addo