Electricity

IBEDC to reflect new VAT rate on transactions

IBEDC to reflect new VAT rate on transactions

By Abisola THOMPSON

Ibadan Electricity Distribution Company (IBEDC) has announced that from Feb. 1, 2020, there will an upward review in the prices of meters sold to customers under the Meter Asset provider scheme (MAP) introduced in 2019.

Mrs Angela Olarenwaju, Head, Branding and Corporate Communication of IBEDC made the disclosure in a said in a statement on Monday.

Olarewaju said that the management said the increase is necessitated by the federal government’s increase in the value added tax (VAT) from five per cent to 7.5 percent.

She said that, in the light of the above, a single-phase meter which used to cost N38,325.00 (VAT inclusive) will now cost N39,237.50 (VAT inclusive), while the a three-phase Meter which used to cost N70,350.00 (VAT inclusive) will now costs N72, 025.00 ( VAT inclusive) .

The IBEDC spokesperson said that subsequently, the meter service charge on MAP payment by installments will also be reviewed to accommodate the new VAT charge.

IBEDC management pointed out that the VAT on tariff has been adjusted to accommodate the new 7.5 per cent rate.

The company appeals to its esteemed Customers to take note of these aa this will be reflected during bill payment and vending for postpaid and pre-paid customers respectively.

It would be recalled that Zainab Ahmed, the minister of finance, budget and national planning, says the implementation of the new value-added tax rate will begin on February 1, 2o2o.

The minister announced this at the ongoing inauguration of the Federal Inland Revenue Service (FIRS) board.

President Muhammadu Buhari signed the finance bill, which increased VAT by 50% into law on January 13.

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