We will not pay — TUC sets 7-day deadline for govt to revoke VAT on electricity

The Trades Union Congress (TUC) has given the government a seven-day ultimatum to retract the imposition of Value Added Tax (VAT) on electricity consumption above the lifeline.

Finance Minister Ken Ofori-Atta has directed the Ghana Revenue Authority (GRA) to work in partnership with the ECG and the Northern Electricity Distribution Company (NEDCO) to enforce VAT on residential customers surpassing the designated lifeline power consumption.

Additionally, the GRA is directed to coordinate with ECG and NEDCO for the transfer of collected revenues as part of domestic VAT collections.

TUC, led by Secretary General Dr. Yaw Baah, strongly opposes the move, highlighting its adverse effects on the livelihoods of ordinary Ghanaians, particularly pensioners and low-income earners.

Dr. Baah emphasized at a press conference on Tuesday, January 23, 2024 We cannot allow poor people, including pensioners, to bear the brunt. Our message to the government is clear: we cannot pay VAT on electricity.

He said 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.

He indicated that the TUC will advise themselves if the finance minister fails to direct GRIDCo, and ECG to withdraw the letter.

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