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TUC Gives Government Ultimatum To Reverse VAT On Electricity Purchases: “We Cannot Pay”
Ghana

TUC Gives Government Ultimatum To Reverse VAT On Electricity Purchases: “We Cannot Pay”

by  Delali Adogla-Bessa 2 min read
  • The Trades Union Congress is demanding the withdrawal of the new Value Added Tax (VAT) on electricity consumption
  • TUC Secretary General Dr Yaw Baah addressed a press conference, saying the new tax was detrimental
  • An earlier letter from the Ministry of Finance indicated that this tax was implemented on January 1, 2024

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The Trades Union Congress (TUC) has given the government until the end of January to withdraw the new Value Added Tax (VAT) on electricity consumption above the lifeline.

TUC Secretary General Dr Yaw Baah addressed a press conference warning that the tax would hurt poor people.

TUC on power vat
TUC Secretary General Dr. Yaw Baah (L).
Source: Getty Images

The union further gave the government until January 31, 2023 or face a strike.

The government has been charging a Value Added Tax (VAT) on a section of electricity consumers in the country.

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A letter from the Ministry of Finance has shown that this tax was implemented on January 1, 2024.

This letter was addressed to the Electricity Company of Ghana and the Northern Electricity Distribution Company.

The tax will be charged to residential electricity customers above the maximum consumption level specified for block charges for lifeline units.

It added that the VAT forms part of implementing the country's Covid-19 recovery plan.

GRA cashing out from betting tax

The Ghana Revenue Authority accrued GH¢15 million in its first two months from its recent tax on sports betting winnings.

The Authority has said it is targeting GH¢60 million by the current football season ends.

The GRA introduced a 10% withholding tax on betting on August 15, 2023, to raise about GH¢400 million annually.

No new tax on bloggers

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The GRA clarified earlier that no new tax is being created for bloggers, brand influencers, and MCs.

The Authority said it is trying to expand the tax net by ensuring the incomes of bloggers, brand influencers, and MCs are taxed.

While the GRA refuted speculation that it is creating a new tax, it has stressed that all income generation must be taxed.

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Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Current Affairs Editor) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.

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