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Govt drops VAT on electricity, set to engage IMF on revenue shortfall
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Reports suggest that the government has opted to cancel the imposition of the 15% Value Added Tax (VAT) on electricity.
This decision, which relieves consumers from the new tax on electricity bills, is said to have been borne out of a cabinet meeting on February 2, 2024.
The New Patriotic Party also posted on its official handle on X [formerly Twitter] that the tax had been dropped.
Sources disclosed that the government’s choice to drop the VAT on electricity is in response to strong opposition from the Trade Unions Congress (TUC) and other stakeholders.
Despite receiving initial approval from both Cabinet and Parliament, the widespread dissent has prompted a reassessment of the policy.
The government is now set to engage in discussions with the International Monetary Fund (IMF) to find a consensus on compensatory measures for the anticipated revenue shortfall resulting from the decision to scrap the VAT on electricity.
While the final decision on the policy remains uncertain, insiders suggest that it could either be entirely discarded or significantly reduced after consultations with the IMF.
“The position currently is that the 15% VAT on electricity is off, and it is likely it could either be off totally or significantly slashed,” reported Asaase News.
Organized Labour had planned a nationwide demonstration on February 13, 2024, urging the government to withdraw the directive to implement the 15% VAT on residential electricity consumption.
The labour groups have also announced their intent to wear red bands at work from February 5 to February 13 and have hinted at the possibility of a nationwide strike if the VAT directive is not withdrawn after the demonstration.
Source: Citinewsroom.com
Attorney General and Minister for Justice, Dr. Dominic Ayine, has announced that the government has accepted the recommendation to abolish the death penalty and replace it with life imprisonment as part of the constitutional review process.
He said the proposed amendment would affect Articles 3, 13, 19 and 72 of the 1992 Constitution, with offences that previously attracted the death penalty instead carrying life imprisonment.
Dr. Ayine made the announcement on July 30, 2026, at the Jubilee House in Accra during the Government Accountability Series while outlining the government’s position on the final recommendations of the Constitution Review Committee.
According to him, the government believes the death penalty is inconsistent with the constitutional right to life and Ghana’s international human rights obligations.
He explained that the recommendation forms part of broader proposals aimed at strengthening the protection of fundamental human rights under the Constitution.
Dr. Ayine said the government had also accepted the spirit of several recommendations to expand rights relating to women, children, persons with disabilities, older persons and the youth.
He added that a comprehensive Human Rights Act would be introduced to protect these rights and provide detailed enforcement mechanisms instead of amending the entrenched provisions of the Constitution through a national referendum.
By: Jacob Aggrey
Minister for Tourism, Culture and Creative Arts, Abla Dzifa Gomashie, has called on both local and international investors to tap into opportunities in Ghana’s tourism, hospitality and creative industries.
Speaking in an interview yesterday with World Media USA Today, the Minister said government is committed to creating a conducive investment environment to support growth in the sector.
She highlighted key investment areas including hotels, fashion, music, film production, and tourism infrastructure.
Dzifa Gomashie also encouraged Ghanaians to invest in domestic tourism to help boost the local economy.
According to her, strategic investment in tourism and the creative economy will drive economic transformation, create jobs, and position Ghana as Africa’s gateway for heritage, culture, business and investment.
“Ghana has vast opportunities across tourism, hospitality and the creative industries. We are ready and open for business,” she stated.
The Minister’s remarks come as government intensifies efforts to leverage culture and tourism as drivers of economic growth and job creation.
By Edem Mensah-Tsotorme
