President George Manneh Weah has issued Executive Order 94 exempting the Liberia Electricity Corporation (LEC) from duty free and Goods Services Tax (GST) on petroleum products.The exemption also covers GST on special categories of equipment, materials and vehicles used by the LEC in the conduct of its operations.
The Executive Mansion said in a statement issued Tuesday, 15 December in Monrovia that the GST exempt for LEC includes 85.04 transformers, 85.44 wires, 73.08 light poles and 90.28.90.00.00 electrical wires.
Others in this category of GST are 84.26-84.28 specialized vehicles and 87.02-87.04 operational vehicles, the Mansion says.The Executive Order 94 by President Weah recognizes existing imperatives that Government must tackle to give the LEC ample capacity to expand the number of connections to the National Electricity Grid.
During its transition from the use of fossil fuels to hydropower to generate electricity, LEC faces external market forces and risks that increase the cost of operations of the corporation, the Mansion explains.
The Executive Order notes that some of these costs, which are associated with the purchase, delivery and storage, and use of fossil fuels, particularly Heavy Fuel Oil (HFO), represent a significant expense to LEC, which show investment in the transition to the wider use of Hydro Electronic Power in Liberia.
The Order further states that customs duties and GST on petroleum products are LEC’s cost categories that have the potential to adversely impact the monthly expense of the corporation with implication on its expansion program.–Press release