By Edzorna Francis Mensah
The Organized Labour has announced its intention to stage a nationwide demonstration against the government for the introduction of a 15% VAT on Electricity consumption.
The protest was announced by the Secretary-General of TUC, Anthony Yaw Baah, on Friday, February 2, 2024 to be held I on on February 13th, 2024 followed their earlier decision that, “the 31st of January 2024, the government had not withdrawn its directive, we would advise ourselves”.
The Government, through the Minister of Finance, Ken Ofori-Atta directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) in a letter to implement a 15% VAT on electricity consumption effective January 1, 2024.
The Trades Union Congress (TUC) in January 2024 gave the government a seven-day ultimatum to withdraw the imposition of Value Added Tax (VAT) on electricity consumption above lifeline.
At a news conference held on January 23, Dr Baah said “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.”
“In our earlier statement, we said if by the 31st of January 2024, the government had not withdrawn its directive, we would advise ourselves. So this afternoon, we’ve met here, and we’ve advised ourselves. It is that advice that we will communicate to the president. Our advice is straightforward. We have advised ourselves that this government is taking us for granted, so we are going to lead massive demonstrations in all the 16 regional capitals of Ghana on 13th February.”
According to him, “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,”
Meanwhile, the government said it’s ready to hold an extensive dialogue with Organised Labour and other key stakeholders in the coming weeks on the VAT on electricity.
The stakeholder dialogue, as stated by the Finance Ministry in its statement dated January 30, 2024, is aimed at ensuring stakeholder buy-in.
“The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on the consumption of electricity by residential customers. Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in,” the Ministry said in its statement.
