Former Central Region Chairman of the National Democratic Congress, Bernard Allotey Jacobs, has pleaded with Finance Minister, Ken Ofori Atta, to consider removing or scrapping off VAT on electricity.
He says people are finding it challenging to comprehend it implications and they are urging for its removal.
“This Vat they have places on electricity, we are pleading with Ken Ofori Atta, people don’t understand it anymore. So are pleading that he scraps it off,” Mr. Allotey said.
The government directed the imposition of VAT on electricity effective January 2024 to raise more revenue as part of its separate COVID-19 recovery and IMF programmes.
In a letter dated January 1, 2024, the Finance Minister, Ken Ofori-Atta, instructed the ECG and the Northern Electricity Distribution Company (NEDCO) to apply the VAT to residential customers exceeding the maximum consumption level for lifeline units.