Ghana News

Organized Labour suspends demo over VAT on electricity

Organised Labour has decided to suspend its planned demonstration against the 15% Value Added Tax (VAT) on Electricity.

Secretary General of the Trades Union Congress (TUC), Dr Anthony Yaw Baah, announced the suspension of the demonstration at a press conference in Accra on Friday, February 9.

“We gave the government to 31st January to withdraw the letter and warned authorities that if by that time the Minister of Finance had not given the directive to stop the VAT we would advise ourselves.

“On 2nd February 2024, the leadership of organized labour met and we resolved that there will be a nationwide demonstration on the 13th of February. On the 7th of Febraury government announced the suspension of the implementation of VAT on electricity consumption. The leadership of organized about has received a formal letter informing us of the new directive. We will therefore like to inform our members that the planned demonstration slated for 13th February has been suspended.”

Government this week suspended the 15 per cent VAT on residential electricity consumers, to allow for further engagement with organised labour.

In a letter dated February 7, Finance Minister Ken Ofori-Atta directed the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCO) to implement the VAT, aiming to raise revenue for the COVID-19 recovery programme.

“On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagements with key stakeholders including Organised Labour,” parts of the statement read.

However, Organised Labour made it clear that the only thing that could stop the demonstration was an official letter from the government withdrawing the VAT.

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