Government is set to drop the 15 percent Value Added Tax (VAT) on electricity.
This decision, according to reports was reached at a Cabinet meeting held on Friday, 2 February 2024.
“The position currently is that the 15% VAT on electricity is off, and it is likely it could either be off totally or significantly slashed,” Accra-based Asaase News quoted a court in Cabinet.
This means that power consumers will no longer be required to pay the controversial 15% VAT in addition to their bills.
The government has also agreed to initiate a conversation with the International Monetary Fund (IMF) to come to a consensus on how it can make up for the revenue shortfall occasioned by the decision to drop the VAT on electricity policy through some extra cuts on spending.
Meanwhile Organised Labour has set Tuesday, 13 February 2024 to hold a massive protest to push government to withdraw the directive to ECG and NEDCO to implement the 15% VAT on residential electricity consumption.