Withdraw 15% VAT on electricity by January 31 or we will advice ourselves – Organised Labour tells gov’t

Organised Labour has bared its teeth at government over the plans to impose 15% Value Added Tax (VAT) on electricity consumption.

At a press conference on Tuesday, January 23, the Secretary-General of the Trades Union Congress (TUC), Dr. Anthony Yaw Baah stressed that if government does not abandon its plans, organised labour members will advice themselves.

“It is always the poor including pensioners who bear the brunt and we should not allow that to continue. Today organized labour, our message to the government is that we cannot pay VAT on electricity, we will not pay it today, we will not pay it tomorrow,” Dr. Anthony Yaw Baah said.

He continued, “Organized labour is therefore demanding the directive from the Minister of Finance to stop the VAT on the consumption of electricity. So, we are giving the government up to 31st January 2024 to withdraw the letter. If by that time the directive has not been given to withdraw it we will advise ourselves.”

The Ministry of Finance early this month announced that the implementation of the 15% VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units in line with Sections 35 and 37 and the First Schedule (9) of Value Added Tax (VAT) Act, 2013 (ACT 870) has commenced.

It forms part of the implementation of the Government’s Medium-Term Revenue Strategy and the International Monetary Fund (IMF) Supported Post-COVID-19 Programme for Economic Growth (PC-PEG).

The move has been rejected by many Ghanaians with the argument that it will bring additional hardship.