No new taxes on electricity bills – GRA

The Ghana Revenue Authority says there are no plans to introduce new taxes to be levied on power consumption, especially in the midst of the COVID-19 pandemic.

A statement copied to the Ghana News Agency said the supply of electricity to a dwelling of up to a maximum consumption level specified for block charges for lifeline units is still exempt from VAT, NHIL and GETFund Levy.

It said the Electricity Company of Ghana (ECG) already charges VAT, NHIL and GETFund levy on the supply of electricity in excess of lifeline units.

The statement said the purpose of the ‘said GRA letter’ was to draw the attention of power producers in particular, to the VAT mechanism as it applies to the power sector and to get operators to invoice the supply of power to the ECG correctly.

“On account of their current invoicing policy, ECG over the years has had some challenges claiming input VAT associated with the supply of electricity by power producers, which could have reduced the net tax payable by ECG to GRA,” it explained.

GRA is scheduling a meeting with Power Producers to address the application of the VAT mechanism to the power sector.

“Meanwhile the letter dated 4th May, 2020 on VAT, GETfund Levy and NHIL on Energy and Capacity charges has been withdrawn,” the statement added.

Source: GNA