Lagos — As directed by the federal government, the new 7.5% Value Added Tax, VAT will take effect from February 1, 2020.
In different circulars from electricity utility companies to their customers, the newly added VAT affects both electricity bills and meters under the Meter Asset Providers, MAP scheme.
According to the circular, the VAT is only applied on aggregate cost of energy consumed by customers per time, including the cost of meter.
However, the Discos clarifies that the VAT is not an increase in the unit cost of electricity or meter.
With the new 7.5% VAT, the single phase meter which used to cost N36, 991, now goes for the sum of N39,765.
On the other hand, the three phase meter which was sold at N67, 055 will now be sold for approximately N72, 000.