TUC gives the government a 7-day ultimatum to withdraw VAT on electricity.
The Trades Union Congress (TUC) has given the government a seven-day ultimatum to withdraw the imposition of a value-added tax (VAT) on electricity consumption above the lifeline.
In a letter dated January 1, Finance Minister Ken Ofori-Atta directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, aiming to raise revenue for the COVID-19 recovery program.
However, the TUC, led by Secretary General Dr. Yaw Baah, vehemently opposed the move, citing its detrimental impact on the livelihoods of ordinary Ghanaians, particularly pensioners and low-income earners.
At a press conference on Tuesday, Dr. Baah said, “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.
He stated that they will advise themselves if the finance minister fails to direct GRIDCo and ECG to withdraw the letter.
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