The Trade Union Congress (TUC) has given the government a one-week ultimatum to withdraw Value Added Tax (VAT) on electricity consumption for residential customers.
The ultimatum is a response to a letter dated January 1, 2024, where the Finance Minister, Mr Ken Ofori Atta directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to start charging VAT for residential customers of electricity above the maximum consumption of level specified for block charges for lifeline units, aiming to raise revenue for COVID-19 recovery program
Speaking at a press conference in Accra, Dr Anthony Yaw Baah, the Secretary General of TUC, strongly imposed the move, saying it would worsen the plight of ordinary Ghanaians, especially pensioners and low-income earners.
He indicated that “It is 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; we will not pay it tomorrow.”
“Our message to the government is very simple, we cannot pay VAT on electricity. Organized Labour is therefore demanding the immediate withdrawal of the above-mentioned letter and another directive from the Minister for Finance to ECG and NEDCO to stop the implementation of the VAT on residential customers of electricity,” he added.
According to Dr Baah, they would advise themselves if the Finance Minister failed to direct ECG and NEDCO to redraw the letter.
“We are giving the government up to January 31, 2024, to withdraw the letter. If by that time the Minister for Finance has not given the directive to ECG and NEDCO to stop the implementation of VAT on residential customers, we will advise ourselves,” he said.