The Trade Union Congress (TUC) is set to embark on a nationwide demonstration effective February 13, 2024, if the government fails to withdraw the 15 percent Value-Added Tax (VAT) on electricity consumption.
General Secretary of TUC, Dr Anthony Yaw Baah at a press conference in Accra on February 2, 2024, further directed all unions to be clad in red from Monday, February 5, 2024, to create awareness of their major demonstration beginning February 13.
“In our earlier statement, we said if by the 31st of January 2024, the government had not withdrawn its directive, we would advise ourselves. So this afternoon, we’ve met here, and we’ve advised ourselves. It is that advice that we will communicate to the president. Our advice is straightforward. We have advised ourselves that this government is taking us for granted, so we are going to lead massive demonstrations in all the 16 regional capitals of Ghana on 13th February,” Dr Yaw Baah noted at the press conference.
In a letter, Finance Minister Ken Ofori Atta stated that any electricity consumption above lifeline units would attract a 15% value-added levy.
The yet-to-be-implemented VAT on electricity consumption according to the government would be used to clear off debts owed to independent power producers (IPP.)
Dr Yaw Baah at the meeting explained that the VAT was detrimental to the livelihood of ordinary Ghanaians.
“It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organized 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. Organized 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,” Dr Yaw Baah said.