The Trades Union Congress (TUC) has justified the 7-day ultimatum to government over the implementation of the 15% Value Added Tax (VAT) on electricity.
According to TUC, excessive taxes is an unfair way for the government to generate revenue.
Deputy General Secretary of TUC, Joshua Ansah, in an interview on Adom FM’s morning show Dwaso Nsem, warned that if the government doesn’t remove the tax, Organized Labour will take action.
He said the incessant taxes is negatively affecting the livelihoods of ordinary Ghanaians, especially pensioners and low-income earners.
Mr. Ansah believes that, there are alternative ways for the government to generate revenue to service the energy sector debt and stabilise electricity supply without burdening consumers with additional taxes.
He said relying solely on VAT is an easy way for the government but there are better ways to raise revenue.
To the TUC General Secretary, imposing taxes on workers is unfair thus government should explore other options to generate revenue.
“Organized labour will advise itself, and unions will do what unions often do when an unpopular decision or tax is introduced that affects workers.
“VAT is not the only thing the government can do to bring back the lights. I don’t think that is the only way the government can take to make the electricity supply stable when a lot of the population is suffering. This is not fair, and that is why workers are resisting it with all their might” Mr. Ansah added.
Finance Minister Ken Ofori-Atta had directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT to generate funds for the COVID-19 recovery program.
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