The Trades Union Congress (TUC), has expressed displeasure in government’s decision to impose a 15% Value Added Tax (VAT) on electricity for consumers above lifeline levels.
This comes after the finance minister, Ken Ofori Atta, in a letter dated Janaury 1, 2024, ordered the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, to generate funds to raise revenue for COVID-19 recovery program.
Speaking at a press conference on Tuesday, January 23, 2024, the General Secretary of TUC, Dr. Yaw Baah, bemoaned the impact it will have on low income earners in the country and asked government to within seven days withdraw rescind the decision.
“Its always the poor people in this country including pensioners, who bear the brunt and we should not allow that to continue. So today, Organized Labour we have come together again and our message to government is very simple. We cannot pay VAT on electricity.
“We will not pay it today or tomorrow. Organised Labour is demanding the immediate withdrawal of the letter, and another directive from the Finance Minister to Ghana Grid Company (GRIDCo), ECG to stop the implementation of the VAT on electricity. We are giving the government, up to January 31, 2024, to withdraw the letter,” Dr Yaw Baah stressed.
He further warned that in the event that the decision is not overturned, the TUC will advise themselves.
“If by that time the Minister of Finance fails to give directive to GRIDCO and ECG, we will advise ourselves,” he added.