SUSPEND 15% VAT ON ELECTRICITY CONSUMPTION IMMEDIATELY-TUC

The Organized labour is calling on the government to immediately suspend the decision to impose 15% VAT on electricity consumption.
Speaking at an event organized by the GRNMA at Accra, the spokesperson of organize labour who double as the general Secretary of the trade union congress, Dr. Yaw Baah has warned the government to reverse the decision or face mass labour agitations.

The Ministry of Finance have 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 Section 35 and 37 and the First Schedule (9) of Value Added Tax (VAT) Act, 2013 (ACT 870) has commenced.
It started effective 1″ January 2024.
This 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 Ministry said.

“The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) are, hereby, requested to liaise with the Ghana Revenue Authority (GRA) to ensure that the implementation of VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units takes effect on 1 January 2024, in line with Sectio35 and 37 and the First Schedule (9) of Act 870,” it said.

According to Dr. Yaw Baah, the labour union is unhappy and will therefore continue to fight it until the decision is canceled.

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