No new taxes on power consumption – GRA clarifies

The Ghana Revenue Authority (GRA) has debunked allegations that it has tasked the Electricity Company of Ghana (ECG) to charge Value Added Tax (VAT) on domestic consumers despite government directive of absorbing the electricity tariff of Ghanaians for the next three months.

According to the GRA, there is no decision of introducing 18 per cent tax on electricity power consumption amidst the fight against coronavirus.

The Minority in Parliament at a press conference demanded the immediate withdrawal of over 18 per cent tax on electricity as it warns of dire consequences on domestic consumers.

Their demand comes after the GRA tasked the ECG to charge VAT on domestic consumers. Until now, electricity for consumers has been zero-rated for VAT since 2001.

Adam Mutawakilu, who addressed the media indicated that, this will make Ghanaians pay more for electricity.

"It will deny you from the food that you buy because you have to do your scale of preference and consumers will be burdened the more…so this 50 per cent was just to deceive Ghanaians, so you gave it to Ghanaians with one hand and then you take it with another hand,” he said.

But Florence Asante, assistant communications and public affairs commissioner, in a statement said, “the GRA does not seek to introduce any new or additional charges to be levied on energy and capacity charges.”

She, however, blame the ECG of already charging VAT, NHIL and GETFund levy on the supply of electricity in excess of lifeline units.