Port Harcourt Electricity DisCo begins 7.5% VAT

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The Port Harcourt Electricity Distribution Company (PHEDCo), Southern Nigeria, will on February 1 begin the implementation of 7.5 percent Value Added Tax (VAT) on customers in four states.

The states are Akwa Ibom, Bayelsa, Cross River, and Rivers.

PHEDCo Manager, Corporate Communications of the company, John Onyi, confirmed this in a statement issued in Port Harcourt, the Rivers state capital.

“PHEDCo announces that effective from February 1, VAT on bill payment from PHEDCo customers will attract 7.5 percent as against the hitherto five percent.

“The 2.5 increase in VAT is coming on the heels of recent approval by the Federal Government through the Ministry of Finance as captured in 2020 fiscal year,”  he said.

The 2.5 percent increase in VAT would result to increase in electricity billing of customers.

“The marginal increase in VAT will not only affect the billing system but other operations that attract VAT, such as meter purchase by customers, among others.

“To this end, PHED in compliance with the directive will effect the increase in VAT from February 1,”  he pointed out.

The spokesman called on customers in the four coverage states to ensure prompt payment of their electricity to enable the company provide improved supply.

Amaka E. Nliam