Business Daily Ghana

Your number 1 platform for Business news

No new taxes on power consumption – GRA

1 min read

The Ghana Revenue Authority (GRA) has denied reports of introducing additional taxes on energy and capacity charges.

According to the GRA, the supply of electricity to a dwelling of up to maximum consumption level specified for block charges for lifeline units is still exempt from VAT, NHIL and GETFund levy.

GRA in a statement said ECG already charges VAT, NHIL and GETFund levy on the supply of electricity in excess of lifeline units

“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 VRA,” the GRA explained in a statement signed by Ms Florence Asante, Assistant Commissioner Communication and Public Affairs.

The GRA noted that it is meeting with power producers to address the application of the VAT mechanism to the power sector.

Meanwhile, GRA has withdrawn the letter dated 4 May 2020 on VAT, GETFund, Levy and NHIL on Energy capacity charges which have been misinterpreted by a section of the media to mean additional charges on energy and capacity.

The GRA reiterated that no new taxes have been introduced on power consumption especially in the midst of COVID-19.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Copyright © All rights reserved. | Newsphere by AF themes.