The government has been issued a seven-day ultimatum by the Trades Union Congress (TUC) to cease the implementation of Value Added Tax (VAT) on electricity usage above the lifeline threshold.
The TUC Secretary General Dr. Yaw Baah stated at a press conference yesterday , “The poor, including pensioners, are consistently the ones to endure the brunt. And that ought not to be permitted to persist. Organized Labor has united to convey a straightforward message to the government: electricity cannot be subject to VAT.
“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 stated that they will advise themselves if the finance minister fails to direct GRIDCo, and ECG to withdraw the letter.
“If by that time the minister of finance fails to give directive to GRIDCO and ECG we will advise ourselves,” he said.
To generate funds for the COVID-19 recovery program, the Finance Minister, Ken Ofori-Atta, instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT.
