IMF suggests reintroducing 15% VAT on electricity amid inflation decline
The International Monetary Fund (IMF) has indicated that the Ghanaian government may consider reintroducing the suspended 15% value-added tax (VAT) on electricity if the country's inflation rate continues to decline. The VAT on electricity was initially put on hold following significant public backlash, with many Ghanaians, particularly residential consumers, expressing concerns about the financial burden it would impose. In its July 2024 Country Staff Report, the IMF hinted that the government might move forward with the VAT implementation if inflation becomes more manageable. "On the revenue side, the implementation of VAT on residential electricity (expected yield 0.17 percent of GDP)...
