The Ministry of Finance has announced it will in the coming weeks hold an extensive dialogue with organized labour and other key stakeholders in connection to the implementation of VAT on the consumption of electricity by residential customers.
This development comes after organized labour, the Electricity Company of Ghana (ECG) and other pressure groups including Arise Ghana opposed the implementation of the ministry’s directive to charge VAT on electricity.
Finance Minister, Ken Ofori Atta, in a letter dated January 1, 2024, ordered the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT on electricity consumed to generate funds to raise revenue for COVID-19 recovery program but at a press conference on Tuesday, January 23, 2024, the Trade Union Congress (TUC) gave the government a 7-day ultimatum to withdraw the directive stating that, the directive if implemented will negatively impact low-income earners in the country.
Also, on Wednesday, January 24, 2024, ECG who are supposed to see to it that the ministry’s directive is enforced raised concerns indicating that there were bottlenecks with the provision in the law that was passed as far back as 2013 hence a stakeholder meeting to resolve the issues.
In a statement released on Tuesday, January 30, 2024, by the Ministry of Finance to address the various concerns raised, it stated that “the ministry has noted the concerns of organized labour on the implementation of VAT on the consumption of electricity by residential customers and an extensive dialogue will be held with organized labour and key stakeholders in the coming weeks to ensure stakeholder buy-in”
The ministry further appealed to organized labour and all key stakeholders including ECG and NEDCo to exercise restraints to facilitate a constructive dialogue towards a quick a quick resolution of the impasse.
See statement below
