Organised Labour Calls Off Planned Demo Over VAT On Electricity

Dr. Yaw Baah

Organised labour, including the Trades Union Congress (TUC), has cancelled its planned demonstration scheduled for February 13, 2024.

The demonstration was initially slated in protest against the government’s implementation of a 15 percent value-added tax (VAT) on electricity.

The government’s decision to suspend the tax followed widespread backlash from the minority, organised labour, and the general public.

The Ministry of Finance issued a directive on February 7 instructing the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) to suspend the implementation of the tax measure.

This move aims to provide an opportunity for the government to engage in further discussions with key stakeholders regarding the VAT on electricity.

During a press conference on Friday, February 9, Dr. Anthony Yaw Baah, General Secretary of the TUC, explained the decision to call off the demonstration.
He stated, “We gave the government until January 31st 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.”
However, on February 7, the government formally announced the suspension of the VAT on electricity consumption, which was communicated to the organised labour in a formal letter.
As a result, the planned demonstration on February 13 has been suspended.

The move to halt the implementation of the VAT on electricity has eased tensions and appeased organised labour.
However, the government’s decision to do so suggests that it recognizes the concerns raised by various stakeholders.
The suspension of the tax measure paves the way for further dialogue and deliberation between the government and organised labour to find a mutually beneficial solution.

As the government continues to engage with stakeholders, it remains to be seen whether an alternative approach to the VAT on electricity will be proposed. In the meantime, the cancellation of the planned demonstration is expected to bring temporary relief to the public and provide an opportunity for constructive discussions towards a fair and sustainable resolution.

By Vincent Kubi

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