TUC gives government a week to remove power VAT

by Mawuli
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Source: newsthemegh.com

The government’s intentions to impose a Value-Added Tax (VAT) on home power consumption that surpasses lifeline units have the Trades Union Congress (TUC) clenching its teeth.

Dr. Yaw Baah, the TUC General Secretary, asked at a press conference on Tuesday that the Finance Ministry revoke the instruction.

He emphasized that the administration had one week to remove it or get ready for the workers’ anger.

“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.”

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

The announced measure has already drawn criticism from some Ghanaians, who claim it will drastically increase their fees, negatively affect businesses, and raise the cost of living in the nation. However, the Ministry of Finance maintains that the measure is in line with the government’s medium-term plan and the Post-COVID-19 Program of the IMF.

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