The Trades Union Congress (TUC) has issued a seven-day ultimatum to the government, demanding the withdrawal of the imposed Value Added Tax (VAT) on electricity consumption exceeding the lifeline threshold.
Finance Minister Ken Ofori-Atta, in a letter dated January 1, instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, aimed at generating revenue for the COVID-19 recovery program.
However, TUC, led by Secretary General Dr. Yaw Baah, strongly opposes the move, 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 asserted, “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.”
He continued, “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.”
Dr. Baah emphasized that if the Finance Minister fails to direct GRIDCo and ECG to withdraw the letter by that deadline, they will consider alternative actions.