Indications are rift that power distribution firms across the country have perfected plans to reflect the new Value Added Tax of 7.5 per cent on all their transactions effective February 1st, as announced by the Federal Government. The disclosure was made by the Ibadan Electricity Distribution Company on Monday, saying it would implement an upward review at the prices of meters sold to customers under the Meter Asset provider scheme introduced in 2019.
Speaking on the development, Head, Branding and Corporate Communication at IBEDC, Mrs Angela Olarenwaju, noted that the management’s decision on the review was necessitated by the Federal Government’s increase in the value-added tax from five per cent to 7.5 per cent.Following this, she said, a single-phase meter which used to cost N38, 325 (VAT inclusive) would now cost N39, 237.50 (VAT inclusive).
Similarly, the three-phase meter which used to cost N70, 350 (VAT inclusive) will now cost N72, 025.00 (VAT inclusive).
Olarenwajufurther disclosed that the meter service charge on MAP payment by instalment would also be reviewed to accommodate the new VAT charge.
