A former presidential staffer in the John Mahama administration, Stan Dogbe, has expressed skepticism about reports stating that the government has canceled the 15% Value Added Tax (VAT) on electricity.
Mr Dogbe believes that this announcement might be an attempt by the government to undermine the Trade Union Congress’ planned demonstration against the tax measure.
In a press release issued on Monday, February 5, Stan Dogbe advises caution among Ghanaians in taking the Akufo-Addo government’s promises seriously. He insists that failure to heed his caution might result in significant disappointment.
“The decision to reverse the previously approved policy of charging 15% value-added tax (VAT) on electricity comes just days before the Trades Union Congress (TUC) planned demonstration on February 13.”
“The TUC and other labour organisations had vowed to hold a nationwide protest to push the government to withdraw the directive to implement the 15% VAT charge on residential electricity consumption,” he wrote.
There has been a reported unanimous decision during a Cabinet meeting on Friday, February 2, to abandon the previously approved policy of imposing a 15% Value Added Tax (VAT) on electricity. According to Asaase Radio, this means that electricity consumers will no longer be required to pay the controversial 15% VAT on top of their utility bills.
In response to the negative reception of the proposed policy, particularly from entities like the Trade Union Congress (TUC), despite its prior approval by both the Cabinet and Parliament, the government has chosen to reevaluate its stance and reverse the decision.
Furthermore, the government has agreed to engage in discussions with the International Monetary Fund (IMF) to reach a consensus on compensating for the anticipated revenue shortfall resulting from the abandonment of the VAT on electricity policy.
Meanwhile, the Trades Union Congress (TUC) and 35 organized labor unions have declared their intention to stage a demonstration on February 13.