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Ghana New Power Tax Put on Hold After Public Outcry Africa Business News
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Ghana's government has suspended plans to implement a new 15% tax on power, following a public uproar that it will worsen the cost-of-living crisis. The value-added tax was to be levied on domestic consumers of electricity. The government introduced it to boost its revenue after pressure from the International Monetary Fund however labour unions opposed the tax and announced nationwide protests against it next week. The finance ministry directed the two main power distributors - the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) - to put the new levy on hold. Authorities say the tax has been put on hold until talks are held to resolve the dispute.
Ghana's government has suspended plans to implement a new 15% tax on power, following a public uproar that it will worsen the cost-of-living crisis. The value-added tax was to be levied on domestic consumers of electricity. The government introduced it to boost its revenue after pressure from the International Monetary Fund however labour unions opposed the tax and announced nationwide protests against it next week. The finance ministry directed the two main power distributors - the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) - to put the new levy on hold. Authorities say the tax has been put on hold until talks are held to resolve the dispute.
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