The Trade Union Congress (TUC) has issued a one-week ultimatum to the Ghanaian government, demanding the withdrawal of Value Added Tax (VAT) on electricity consumption for residential customers.
The ultimatum comes in response to a directive from Finance Minister Ken Ofori Atta, dated January 1, 2024, instructing the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to charge VAT for residential customers above the specified maximum consumption level for block charges.
Dr. Anthony Yaw Baah, the Secretary-General of TUC, expressed strong opposition to the move, stating that it would worsen the plight of ordinary Ghanaians, especially pensioners and low-income earners.
Dr. Baah emphasized, “We cannot pay VAT on electricity; we will not pay it today; we will not pay it tomorrow.”
He called for the immediate withdrawal of the directive, stating, “Organized Labour is demanding the immediate withdrawal of the above-mentioned letter and another directive from the Minister for Finance to ECG and NEDCO to stop the implementation of the VAT on residential customers of electricity.”
The TUC has given the government until January 31, 2024, to withdraw the letter. If the Finance Minister does not direct ECG and NEDCO to halt the implementation of VAT on residential customers by that time, Dr. Baah warned that they would “advise ourselves.”
