We Will No’t Pay VAT On Electricity Today, We Will Not Pay It Tomorrow – Organised Labour

Organised Labour has given the government a one-week ultimatum to withdraw the value added tax (VAT) on electricity for residential customers.

The labour unions have said the implementation of the VAT on residential customers would worsen the plight of already burdened power consumers since the cost of electricity would go up by AN ADDITIONAL 15 per cent.

In a letter dated January 1, Finance Minister, Ken Ofori-Atta, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, aiming to raise revenue for the COVID-19 recovery program.

However, addressing a press conference in Accra Tuesday Janyary 23, 2024, Secretary General of the Trades Union Congress (TUC) Dr Yaw Baah gave the 7-day ultimatum for government to withdraw the move.

He emphasised that the government must withdraw the implementation of the VAT or be prepared to face the wrath of workers.

“Our message to government is very simple , “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; we will not pay it 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 Yaw Baah said..

He stated that they will advise themselves if the finance minister fails to direct GRIDCo, and ECG to withdraw the letter.

“If by that time the minister of finance fails to give directive to GRIDCO and ECG we will advise ourselves,” he said.