HomeGeneral NewsElectricity VAT suspension victory for Organised Labour

Electricity VAT suspension victory for Organised Labour

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The General Secretary of the Industrial and Commercial Workers Union(ICU) Morgan Ayawine, has commended Organised Labour for their position on the 15% Value Added Tax (VAT) on electricity for domestic consumers.

Mr Ayawine has said the decision of government to suspend the controversial tax policy following the resistance is a victory for Organised Labour.

In an interview with Adom News, he stated but for the opposition by Organised Labour, government would have pushed the VAT down the throat of Ghanaians despite the existing economic hardship.

He noted that although Organised Labour wanted a total withdrawal and not a suspension, they have been able to buy time for extensive stakeholder engagement.

“There’s no disappointment the intended demonstration has been suspended because Labour Unions have achieved their goal,” he said,.

In a letter dated Thursday, February 8, the Ministry informed Organised Labour that it has instructed the Electricity Company of Ghana and NEDCO to cease the implementation of the controversial policy.

The government has directed the ECG and NEDCO to suspend the implementation of the tax on electricity consumption by residential customers pending further engagements with key stakeholders, including Organised Labour.

Following threats of a mammoth demonstration which was set for February 13, the government last week announced a suspension of the tax.

However, the General Secretary of the Trades Union Congress (TUC), Dr Yaw Baah, has warned that the demonstration would proceed if the government fails to immediately withdraw the policy entirely.

Dr Baah stressed that Organised Labour will not hesitate to protest against any future unfavourable tax policies.


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