Government agrees to drop 15% VAT on electricity – Report

Reports have revealed that the government has reached a unanimous decision to drop the 15% Value Added Tax on electricity.

According to Asaase News sources, cabinet held a meeting on February 2 where this decision was taken.

The report added that 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.

It further noted that the final decision to drop the tax will be decided after the government meets with the government.

“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,” Asaase News said.

After the announcement of the 15% VAT, the government has come under a lot of backlash as trade unions said it will increase their cost of operations among other things.