The Trades Union Congress (TUC) has issued a seven-day ultimatum to the government, demanding the withdrawal of the imposition of Value Added Tax (VAT) on electricity consumption beyond the lifeline.
On January 1, Finance Minister Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, with the aim of generating revenue for the COVID-19 recovery program.
The TUC, led by Secretary General Dr. Yaw Baah, strongly opposes this decision, highlighting its adverse effects on the lives of ordinary Ghanaians, especially pensioners and low-income earners.
During a press conference on Tuesday, Dr. Baah stated, “It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organized 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 or tomorrow. Organized 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 until January 31, 2024, to withdraw the letter.”
Dr. Baah said if the Finance Minister, Ken Ofori-Atta fails to withdraw the directive, Organized Labour will “advise themselves.”
“If by that time the Minister of Finance fails to give a directive to GRIDCo and ECG, we will advise ourselves,” he declared.
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