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Government begins implementation of VAT on Electricity Tariffs.

IMPLEMENTATION OF VALUE ADDED TAX (VAT) ON THE SUPPLY OF ELECTRICITY ABOVE THE LIFELINE FOR RESIDENTIAL PURPOSE

As part of the implementation of the Government’s Medium-Term Revenue Strategy and the IMF-Supported Post Covid-19 Programme for Economic Growth (PC-PEG), the implementation of

VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units in line with Section 35 and 37 and the First Schedule (9) of Value Added Tax (VAT) Act, 2013 (ACT 870) has been scheduled for implementation, effective 1ª

January, 2024.

  1. For the avoidance of doubt, 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” in line with Section 35 and 37 and the First Schedule (9) of Act 870.
  2. 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 1» January 2024, in line with Sectio35 and 37 and the First Schedule (9) of Act 870.

  1. 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.
  2. We are counting on your usual cooperation in this regard.
A release letter from the finance ministry

VIC

KEN OFORI-ATTA

MINISTER

DISTRIBUTION LIST ATTACHED:

Ministry of Finance: Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid ce: Hon. Minister, MoEn

Hon. Minister of State, MoF Hon. Dep. Minister, MoF

Chief Director, MoF

The Executive Secretary, PURC

Commissioner-General, GRA

Director, ESRD, MoF

Dir. Rev Policy Division, MoF

Director, Legal, MoF

Tel: +233 (01302 747 197

Emails info@matep gov gn

Website: www.mafep.gov

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