The Trades Union Congress (TUC) has taken a brave stand by giving the government a seven-day ultimatum to reverse its plan to levy Value Added Tax (VAT) on energy use beyond lifeline.
In an effort to raise money for the COVID-19 recovery program, Finance Minister Ken Ofori-Atta issued a directive on January 1st that specifically targeted the Northern Electricity Distribution Company (NEDCO) and the Electricity Company of Ghana (ECG).
Led by Secretary General Dr. Yaw Baah, the TUC vehemently opposes the imposition, highlighting its adverse effects on the lives of ordinary Ghanaians, especially pensioners and those with low incomes.
During a press conference on Tuesday, Dr. Baah expressed concern,asserting, “It’s always the poor people in this country, including pensioners, who bear the brunt and we should not allow that to continue. Organised Labor, we have come together, and our message to the government is very simple: we cannot pay VAT on electricity.”
He went on to declare, “We will not pay it today or tomorrow. Organized Labor is demanding the immediate withdrawal of the letter and another directive from the Finance Minister to Ghana Grid Company (GRIDCo) and ECG to halt the implementation of VAT on electricity. We are giving the government until January 31, 2024, to withdraw the letter.”
Dr. Baah emphasized that if the Finance Minister fails to direct GRIDCo and ECG to withdraw the letter by the specified date, they will “advise themselves” on the necessary course of action.
The Labor Union stands firm in its resolve to protect the interests of the people and ensure a fair and just resolution to the matter.