The government has announced its intention to engage in comprehensive discussions with Organised Labour and other significant stakeholders in the upcoming weeks regarding the proposed Value Added Tax (VAT) on electricity for residential customers, as confirmed by the Ministry of Finance.
The objective of these discussions is to secure buy-in from stakeholders, as stated in a press release issued by the Ministry of Finance on the evening of Tuesday, January 30, 2024.
Below is the press statement from the Ministry of Finance for your reference.
Press Release on VAT for Residential Customers of Electricity
Accra, Tuesday, 30TH January 2024… Reference is made to the Ministry of Finance’s letter to ECG and NEDCO on the above subject, dated 12th December 2023; as well as the press statement issued by Organised Labour on the same subject, dated 23rd January, 2024.
The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on consumption of electricity by residential customers.
Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in.
The Ministry therefore appeals to Organised Labour and all stakeholders, including ECG and NEDCO, to exercise restraint to facilitate a constructive dialogue towards a quick resolution of the impasse.
We note the progress the country is making in the implementation of the Post Covid-19 Programme for Economic Growth (PC-PEG) including posting higher than programmed growth targets, declining inflation, improvement in fiscal and external positions, a more stable exchange rate, and the declining Monetary Policy Rate.
Government hereby reiterates its commitment to working with all stakeholders in order to sustain these gains and engender macroeconomic stability and inclusive growth.
ISSUED BY THE PUBLIC RELATIONS UNIT
MINISTRY OF FINANCE
THE NEWS EDITOR