Ethiopian Electric Utility Imposes VAT on Electricity Consumers

Ethiopian Electric Utility has imposed Value-added tax (VAT) on electricity consumers.

The VAT will be added to the electricity bills of those customers who consume over 200 kilowatt hours a month. The tax has been imposed on other types of payments too. Individuals or entities applying for a new electricity connection will also have to pay VAT.

With rising cost of living and depreciating value of Ethiopian currency birr, people have been asking the government to provide relief to common man in Ethiopia. Electricity consumers have been complaining about Ethiopian Broadcasting Corporation (ETV) charging annual television service fee by adding it to the electricity bill.

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