TUC issues ultimatum to Government, demands withdrawal of VAT on electricity consumption

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The Trades Union Congress (TUC) has issued an ultimatum, giving the government seven days to withdraw the imposition of Value Added Tax (VAT) on electricity consumption beyond the lifeline threshold.

 

Dr. Yaw Baah, the General Secretary of TUC, highlighted the adverse impact on the livelihoods of ordinary Ghanaians, particularly pensioners and those with low incomes.

 

During a press conference on Tuesday, January 23, Dr. Baah underscored the financial burden this move places on the impoverished population, emphasizing their inability to afford the additional tax.

 

“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,” Dr. Yaw Baah asserted.

 

The ultimatum, valid until January 31, 2024, places the onus on the Finance Minister to instruct GRIDCo and ECG to retract the letter imposing VAT on electricity consumption.

 

Dr. Baah hinted at potential actions by Organized Labour if the Finance Minister fails to meet the stipulated deadline.

 

This move by the government, outlined in a letter dated January 1, has been explained as part of the COVID-19 recovery programme, aimed at generating additional revenue. Deputy Energy Minister Agyapa Mercer has justified the decision, citing the need to settle debts owed to independent power producers.

 

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