Ghana: Stop ECG From Passing VAT, NHIL, GETFund On Electricity End Users-CIPDiB To GRA

The Chamber of Independent Power Producers Distributors and Bulk Consumers (CIPDiB) is asking the Ghana Revenue Authority (GRA) to stop the Electricity Company of Ghana (ECG) from charging electricity consumers VAT, NHIL and GETfund levies.

“We would like to call on the Ghana Revenue Authority to formally circulate a letter to the
concerned stakeholders in the power sector withdrawing their earlier directive and direct
the Electricity Company of Ghana to specifically desist from charging Ghanaians those taxes with immediate effect,” a statement issued by the CEO of CIPDiB, Elikplim Kwabla Apetorgbor, said.

The call follows a statement issued by the GRA to clarify its earlier directive to power producers to charge Electricity Company of Ghana (ECG) VAT, GETFund and NHIL which have been interpreted as an attempt to increase cost of electricity.

The GRA’s statement noted that ECG was already charging consumers GETfund, NHIL and VAT and, therefore, expressed worry over the development.

Reacting to the issue, CIPDiB said these add-on taxes on the end user tariff is the limitation for PURC to give cost compensatory tariff to fix the Annual Revenue Requirement shortfalls of the sector.

“Besides, the sector operates a pass through cost system, so any needless induced cost will automatically be passed on to the end users, hence, the need to control cost in the power supply chain,” CIPDiB concluded.

Meanwhile, CIPDiB is also calling for the removal of VAT, NHIL and GETFund levies for End User tariff.

Source:www.energynewsafrica.com