Revoke 15% VAT on electricity in 7 days – TUC to govt

The Trades Union Congress (TUC) has given the government a seven-day ultimatum to retract the imposition of Value Added Tax (VAT) on electricity consumption beyond the lifeline threshold. Dr. Yaw Baah, Secretary General of TUC, expressed concern about the negative impact this tax would have on ordinary Ghanaians, especially pensioners and those with low incomes.

During a press conference on January 23, Dr. Baah stated that the impoverished population cannot afford the additional tax burden and called on the government to immediately repeal the proposed tax. He emphasized that it is always the poor who suffer the most and encouraged the government to withdraw the letter and directive to GRIDCo and ECG regarding the VAT on electricity by January 31, 2024.

Dr. Baah warned that if the Finance Minister does not intervene by that time, they will take necessary measures themselves. The Finance Minister, Ken Ofori-Atta, issued a letter on January 1 instructing ECG and NEDCO to implement the VAT as a means of generating revenue for the COVID-19 recovery program.

The government has justified the imposition of a 15 percent VAT on electricity consumption as part of their COVID-19 recovery efforts and the need to settle outstanding debts owed to independent power producers.