Organized Labour, led by the Trades Union Congress (TUC) of Ghana, is set to launch a series of nationwide protests on February 13, 2024, against the government’s decision to impose a 15% Value Added Tax (VAT) on electricity.
This move comes after the government failed to heed a two-week ultimatum to retract the contentious tax directive issued to power distributors.
The TUC had previously given the government a seven-day notice in January 2024 to revoke the VAT imposition on electricity consumption beyond the lifeline tariff, emphasizing the undue burden it places on the nation’s less affluent population, including pensioners.
The Secretary-General of TUC, Anthony Yaw Baah, announced the decision to protest on February 2, 2024, stating, “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 February 13.”
At an earlier press conference on January 23, 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.
“Organised 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. Organised 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.
Despite the looming protests, the government has expressed its willingness to engage in extensive dialogue with Organized Labour and other stakeholders to discuss the VAT on electricity, aiming to secure broader support for the policy.
The Finance Ministry, in a statement dated January 30, 2024, acknowledged the concerns raised by Organized Labour and promised to facilitate discussions in the upcoming weeks.
The decision to protest reflects a significant escalation in the standoff between Organized Labour and the government over the new tax measure, with both sides appearing to seek resolution through either withdrawal or consensus-building dialogue.
