The government has decided to cancel the 15% value added tax (VAT) on electricity. This decision was made during a cabinet meeting held on Friday, February 2, 2024, where everyone agreed to drop the approved policy of charging 15% VAT on electricity.
According to reports, the 15% VAT on electricity is no longer in effect, and it may either be completely removed or significantly reduced.
As a result, people who use electricity will not have to pay the contentious 15% VAT on their bills anymore.
The government will talk with the International Monetary Fund (IMF) to figure out how to cover the money it will lose from removing the VAT on electricity.
They might need to cut spending more to make up for it.
