The Minority Spokesperson on energy in Ghana’s parliament Hon. Adam Mutawakilu is demanding the withdrawal of a directive from Ghana Revenue Authority (GRA) asking power producers in the West African nation to charge VAT, GETfund and NHIL levies on electricity they sell to the Electricity Company of Ghana.
A letter from the GRA dated 4th May 2020 announced the directives, indicating that such services will no longer be zero-rated.
Reacting to the issue in an interview with Accra-based Citi FM, Hon. Mutawakilu, who is the Member of Parliament for Damongo said the decision if implemented will increase the cost of electricity to unbearable levels.
“You are all aware that on the 9th of April, President Nana Addo addressed the nation with respect to COVID-19. In that address, he did indicate that consumers of electricity will be given a relief of 50%. Ghanaians welcomed it wholeheartedly and he did indicate that it will take effect from 1st May even though many consumers were not able to access that relief on the given date.”
“What Ghanaians did not know and more particularly, residential consumers who are the majority of consumers is that President Nana Akufo-Addo was giving the residential consumers the relief on the right hand and using the left hand to take back the relief. On May 4, 2020, a letter from GRA directed ECG to charge GETFund levy, National Health Insurance Scheme and VAT on residential consumers of electricity and that means that if you do the arithmetic, consumers will be paying 18.125% more on what they are consuming currently. We call on GRA to withdraw the levy,” Mutawakilu said.