Labor Unions Issue One Week Ultimatum to Government to Withdraw VAT on Electricity

Organized Labor has issued a stern ultimatum to the government, demanding the withdrawal of the value-added tax (VAT) on electricity for residential customers within one week. The labor unions argue that implementing VAT on residential customers will exacerbate the challenges faced by already burdened power consumers, leading to a 15% increase in the cost of electricity.

Speaking at a press conference in Accra on Tuesday morning, January 23, 2024, Dr. Yaw Baah, the Secretary-General of the Trades Union Congress (TUC), emphasized the need for the government to reconsider the implementation of VAT. Dr. Baah made it clear that failure to withdraw the VAT would result in severe consequences, as workers are unwilling to bear the additional financial burden.

In a straightforward message to the government, Dr. Baah stated, “Our message to the government is very simple – we cannot pay VAT on electricity; we will not pay it today; we will not pay it tomorrow.” The labor unions are resolute in their stance, signaling potential unrest among workers if the government does not heed their demand.