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Impact of the 2019 Finance Law on electricity bills… What you need to know!

The 2019 Finance Law extends value-added tax exemption to electricity tariffs in Cameroon. As from 2019, VAT is not applicable to household consumption of between 0 and 220 KWH. This means an additional 110 KWH tax-free, compared to the past.

This change will be taken into account on the electricity bills issued to customers as from February 2019. The indexes read in February will actually determine consumptions for the first month of the year 2019.

What does the law provide?

Article 128 (9): (Page 15)

Household consumers of water and electricity shall be exempted from value-added tax if their consumption does not exceed:

  • 220 KWH monthly for electricity
  • 20 m3 monthly for water

 

What has changed?

 

 

Exemption bracket

VAT levy

Previously 2019

from 0 to 110 KWH

  • For consumption between 0 and 110 KWH, No VAT applied.
  • For consumption above 110 KWH, no VAT applicable on the first 110 KWH while is VAT applicable on the difference; that is to say any additional KWH after that.

From 2019 (it will be visible on the bills as from February 2019, and from January 2019 for prepaid customers)

from 0 to 220 KWH

  • For consumption between 0 and 220 KWH, No VAT applicable.
  • For consumption above 220 KWH, VAT applicable to all calculated consumption.

 

Our advice to electricity users to better take advantage of this measure :

  • Make sure you have only one household on the meter in order to keep your contain consumption within the tax-free margin;
  • Get your meter from Eneo in case you do not have one yet;
  • Save energy; check your consumption;
  • Non-adherence to these tips can result in an increase of about 4% on your next consumption bill.

 

For more informations, contact us on :

Call center: 8010

Whatsapp: 699119911

Facebook: MyEasyLight

Twitter: @EneoCameroon14

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