The Trades Union Congress TUC has demanded the prompt withdrawal of the plan imposition of the 15% VAT on the electricity consumption.
The TUC is of the view that, the taxes are unacceptable given the current economic challenges.
Government has justified the 15 percent VAT it is imposing on electricity consumption.
The government hopes to raise more revenue as part of its COVID-19 recovery program, and as part of the measures taken, directed the imposition of VAT on electricity.
In a letter dated January 1, Finance Minister, Ken Ofori-Atta instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to apply the VAT to residential customers exceeding the maximum consumption level for lifeline units.
People, including the Director of Business Operations at Dalex Finance, Joe Jackson, criticised the government’s decision to impose the VAT on consumers, describing it as harsh.
Kofi Kapito, the Chief Executive Officer (CEO) of the Consumer Protection Agency, also described it as ridiculous.
Deputy Energy Minister, Andrew Agyapa Mercer says it was a difficult decision for the government, but it is necessary to do so to clear off debts owed to independent power producers.
But speaking to the media, the Secretary General of the Trades Union Congress Dr. Yaw Baah said organized labour will strongly opposed the tax which they believe is an IMF conditionality.
LISTEN TO DR. YAW BAAH IN THE AUDIO BELOW:
Story by Osei Akoto(Teacher Kojo) #Ahotoronline.com
