Ghana’s organised labour sets to protest 15 per cent VAT on electricity
Secretary-General of Trade Unions Congress, Anthony Yaw Baah

The Organised Labour in Ghana has announced plans to embark on a nationwide demonstration against the Ghanaian government’s imposition of a 15 percent value-added tax on electricity.

Ghana’s Secretary-General of Trade Unions Congress, Anthony Yaw Baah said the government has been issued a two-week ultimatum to withdraw the controversial tax or face the nationwide protest which will begin on February 13.

TUC in January 2024 issued a seven-day ultimatum to the government to withdraw the imposition of Value Added Tax (VAT) on electricity consumption above lifeline.

At an earlier press conference on January 23, Baah said, “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.”

“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.”

Meanwhile, the government said it has planned to hold an extensive dialogue with Organised Labour and other crucial stakeholders in the coming weeks on the VAT on electricity.

The stakeholder dialogue, as stated by the Finance Ministry in its statement dated January 30, 2024, is designed to ensure the workers accept the new electricity tax.

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