Tag Archives: electricity

Busines, News

ECG urges prepaid customers to top up to last one month ahead of system upgrade

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The Electricity Company of Ghana (ECG) has issued an urgent notice to customers using Nuri Prepaid Meters, advising them to top up their meter credit sufficiently to last at least one month.

This measure is to prevent vending disruptions during an ongoing upgrade of the Standard Transfer Specifications (STS) metering systems, which includes the Nuri Prepayment system.

In an announcement released on Saturday, November 23, 2024, ECG highlighted the critical nature of the upgrade, which aims to ensure uninterrupted vending services for customers.

“This is a crucially mandatory STS upgrade designed to ensure uninterrupted vending service,” ECG stated, urging customers to cooperate by topping up their meters in advance.

Support for customers  

The company assured customers of its readiness to facilitate the upgrade process and encouraged them to reach out for assistance if needed.

“For your convenience and the immediate upgrade of your Nuri Prepayment meters, please call our call centre on 0302 611611 or contact us via our social media platforms (ECGghOfficial) for expedited action,” the statement said.

The STS upgrade is part of ECG’s efforts to modernise its infrastructure and enhance service delivery. By ensuring that customers’ meters are compatible with the latest vending protocols, the upgrade seeks to streamline the electricity payment process and reduce potential disruptions.

The company has called on customers to comply with the advisory and assist in making the exercise a success.

 

 

Source: Graphic

Politics

Govt to tax foreign incomes of resident Ghanaians to replace VAT on electricity

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The Government is seeking to plug the revenue gap created as a result of the abandoned VAT on electricity with a tax on the foreign incomes of resident Ghanaians.

At the beginning of the year, the government introduced a value-added tax on electricity, however, it was forced to abandon the initiative following a public backlash.

This created a revenue gap of about GHc 1.8 billion.
The government had planned to implement the VAT on electricity as part of revenue measures in the IMF deal but the initiative was abandoned after public resistance, leading to a revenue shortfall.

The government is confident that ensuring compliance with the tax on foreign incomes will close the revenue gap.

Ghana’s deal with the IMF entails certain expenditure rationalization and revenue measures to ensure fiscal consolidation of the economy.

To make up for this shortfall, the government says it will ensure compliance with the tax on foreign incomes of Ghanaians who reside in the country for 183 days or more.

“The alternative is a compliance measure on foreign incomes of resident Ghanaians. Not Ghanaians abroad. We want to make that clear. This is not a measure. It has been in the policy but its implementation has not been optimal.

We are happy to announce that we have put strong and structural measures in place to ensure that this yields the revenue of GHS 1.8 billion and beyond.”
The GRA boss also encouraged taxpayers to take advantage of the window created to get the interest on their accounts waived.

“Its implementation has begun because the team is mobilizing themselves and drafting the letters to be sent to individual account holders. So by the 2nd of May, those letters might have gone out.

If individuals come forward within three months and say that, this is the amount in this account, the interest on the account will be waived and that is the voluntary disclosure aspect of this measure”.

Meanwhile, Finance Minister, Dr. Mohammed Amin Adam wants Ghanaians to bear with the government as new measures are introduced to restore the economy

 

 

Source: Citi Newsroom

 

News, Topstory

You have 7 days to revoke VAT on electricity – TUC to government

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The Trades Union Congress (TUC) has issued a seven-day ultimatum to the government, demanding the withdrawal of the imposition of Value Added Tax (VAT) on electricity consumption beyond the lifeline threshold.

The General Secretary of TUC, Dr. Yaw Baah stressed on the detrimental impact of this move on the livelihoods of ordinary Ghanaians, particularly pensioners and those with low incomes.

During a press conference on Tuesday, January 23, Dr. Baah emphasised that the impoverished population in the country cannot afford to bear the additional tax burden.

He called on the government and its agencies to promptly retract the implementation of the proposed tax.

“It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organised Labour, we have come together and our message to the government is very simple, we cannot pay VAT on electricity.

“We will not pay it today or tomorrow. Organised Labour is demanding the immediate withdrawal of the letter, and another directive from the Finance Minister to Ghana Grid Company (GRIDCo), ECG to stop the implementation of the VAT on electricity. We are giving the government, up to January 31, 2024, to withdraw the letter,” Dr Yaw Baah said.

He emphasised that they would take the necessary action if the Finance Minister does not instruct GRIDCo and ECG to retract the letter.

“If by that time the Minister of Finance fails to give directive to GRIDCO and ECG, we will advise ourselves,” he said.

In a letter dated January 1, Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, with the goal of generating revenue for the COVID-19 recovery programme.

The government has outlined the rationale for the imposition of a 15 percent VAT on electricity consumption.

This measure is part of the government’s COVID-19 recovery programme, aiming to generate additional revenue.

Deputy Energy Minister Agyapa Mercer speaking in an interview with Citi FM on Monday, January 15, emphasised that while it was a challenging decision, it is necessary to settle debts owed to independent power producers.

“Obviously, if you look at the scope of the tax and what it is intended to do—raise revenue to meet some obligations of the government in the energy sector—it will interest you to know that, as we speak, as of July 2023, the amount of money that we owe to the IPPs alone is in the region of GH¢1.7 billion.

Source: Joynews.com