The Trades Union Congress (TUC) has sent a strong signal to the government that they are going to resist the Value Added Tax (VAT) on electricity.
This follows the move by the government through the Ministry of Finance in introducing a Value Added Tax (VAT) on a designated segment of electricity consumers in the country.
The Minister for Finance, Ken Ofori-Atta who signed the letter addressed to both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO), outlined the implementation of VAT.
The communication from the Minister specifies that the VAT will be applicable to residential electricity customers surpassing the maximum consumption level set for block charges for lifeline units.
The Ministry further emphasized that the measure is aligned with the government’s Covid-19 recovery initiative and became effective on January 1, 2024.
However, addressing a gathering, the Secretary-General of the Trades Union Congress (TUC), Ghana, Dr Anthony Yaw Baah indicated that there is no way they are going to sit aloof for this electricity tax to see the light of day.
“This country is called Ghana and with all the resources we have, now the government doesn’t have anywhere to tax, they are taxing our electricity also. Tomorrow they will tax our water and we are not going to sit down for that to continue.
“We need to fight it until this thing is cancelled. How can you add this thing to the problems we have in this country. The lifeline they are talking about is 30kwh, it used to be 50 they brought it down to 30. If you have two light bulbs in your house and you have a television and if you leave the television on for more than five hours you will pay this tax,” Dr. Baah narrated.
According to him, every Ghanaian with fridges and deep freezers are going to pay this tax introduced by the government.
“Why should this thing happen in this country? If we don’t resist this thing, tomorrow they will come and tax water. They will say there is a lifeline.
“This law was passed in 2013, why is it that all these governments have not implemented it? Why is it that we are allowing the International Monetary Fund (IMF) to allow this government to implement it now?” Mr. Baak asked.
Source: Today.com.gh
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