ECG says it’s yet to implement VAT on electricity

The Electricity Company of Ghana (ECG) says it is yet to implement the intended 15 per cent charge of Value Added Tax (VAT) on electricity consumption for non-lifeline residential customers. 

The Ministry of Finance, in line with Sections 35 and 37 and the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870), announced that the implementation of the 15 per cent VAT for residential customers of electricity commenced on January 1, 2024. 

Mr Charles Nii Ayiku Ayiku, the General Manager-External Communication at the ECG, told the Ghana News Agency that the company was yet to start the implementation of the VAT on residential electricity consumption above the lifeline category. 

Mr Ayiku said currently, residential customers are consuming power at the approved tariff rate by the Public Utility Regulatory Commission (PURC). 

On when the implementation of the VAT would commence, he said meetings were ongoing and the public would be made aware of its commencement before it would be rolled out. 

He explained that lifeline users of electricity comprise those who consume between zero and 30 units of energy within a month. 

Meanwhile, the energy consumption chart available to the Ghana News Agency showed that using a five- to seven-watt energy bulb for 143 to 200 hours and a seven-watt mobile phone charger for 143 hours would constitute one unit kilowatt per hour (kwh) each. 

A 93-hour and 25-hour usage of CFL 11 and 40 watts, respectively, would lead to one unit of power each. Also, 22 hours of usage of a 45-watt computer also constitutes one unit of power used. 

The consumption of one unit kwh, according to the ECG energy consumption chart, could occur when a 70-watt fan is used for 14 hours, an 80-watt television is used for 12 hours, and a 100-watt sound stereo is used for 10 hours. 

A unit of power can be consumed within five hours of using a 200-watt fridge or freezer, while blending with a 310-watt blender for two hours would consume a unit of power domestically. 

A 500-watt computer with a monitor will also constitute a unit of power within two hours of usage, while a water heater, hand dryer, iron, deep fryer, and washing machine of 100 watts can each consume a unit of power within an hour of usage.

 According to the energy consumption chart, a 1500-watt split air conditioner will consume a unit of power when used for 40 minutes, while in 30 minutes, a 2000-watt kettle or microwave will consume a unit of power. 

The highest power consumption is an 8500-watt electrical cooker, which can use one unit of power in seven minutes.

Source: GNA

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