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The government has been given a seven-day ultimatum by the Trades Union Congress (TUC), which demands that the Value Added Tax (VAT) be removed from electricity consumption above the lifeline threshold.
The TUC Secretary General, Dr. Yaw Baah, emphasized how this action will negatively affect the standard of living for common Ghanaians, especially pensioners and low-income earners.
Dr. Baah emphasized during a press conference on Tuesday, January 23, that the nation’s impoverished population is unable to absorb the additional tax burden.
He demanded that the government immediately revoke the proposed tax’s implementation from all of its agencies.
“It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organised Labour, we have come together and our message to the 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 said.
He emphasized that should the Finance Minister not order GRIDCo and ECG to retract the letter, they would take the appropriate measures.
He declared, “We will advise ourselves if by that time the Minister of Finance fails to give directive to GRIDCO and ECG.”
To raise money for the COVID-19 recovery program, Finance Minister Ken Ofori-Atta directed the Northern Electricity Distribution Company (NEDCO) and the Electricity Company of Ghana (ECG) to impose the VAT in a letter dated January 1.
The government has provided an explanation for why there will be a 15 percent value-added tax on electricity use.
This action is intended to bring in more money as part of the government’s COVID-19 recovery program.
Source: Ghanatodayonline.com
