Government Drops VAT on Electricity, Seeks IMF Assistance for Revenue Shortfall

• The government has decided to cancel the 15% VAT on electricity.
• The decision was made during a cabinet meeting on February 2, 2024.
• The New Patriotic Party confirmed the cancellation on social media.
• The cancellation is in response to opposition from the Trade Unions Congress and other stakeholders.
• The government will engage with the IMF to find compensatory measures for the revenue shortfall.
• The final decision on the policy is uncertain, but it could be discarded or significantly reduced after consultations with the IMF.
• Organized Labour planned a nationwide demonstration and wearing red bands at work to protest the VAT directive.

Source: citinewsroom.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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