Ghana Tax Burden: Organised Labour To Stage Demonstration Against VAT On Electricity On February 13

• Organised labour is set to hold a nationwide protest against the 15% VAT on Electricity on February 13, 2024
• The Secretary-General of the Trades Union Congress said the government was taking its concerns for granted
• The Trades Union Congress gave the government until the end of January 2024 to withdraw the tax

Organised Labour will stage a nationwide demonstration against the 15% VAT on Electricity following an earlier threat.

The protest is scheduled for Tuesday, February 13, 2024, and was announced by the Secretary-General of the Trades Union Congress, Anthony Yaw Baah, on Friday, February 2, 2024.

Baah complained that the government was taking them for granted.

“We are going to lead massive demonstrations in all the 16 regional capitals of Ghana on 13th February.”

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The government has plans to charge a Value Added Tax (VAT) on a section of electricity consumers in the country.

A letter from the Ministry of Finance has shown that this tax was to be 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.

Former President John Mahama has supported Trades Union Congress' call for the government to halt the VAT on electricity.

Mahama said the government was worsening economic conditions in the country with the new tax.

The Trades Union Congress gave the government until the end of January 2024 to withdraw the tax.

Parliament passes New Revenue Bills

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In April 2023, YEN.com.gh reported that Parliament passed three major revenue bills to improve Ghana's economy.

The new bills were the Growth and Sustainability Levy Bill of 2022, the Excise Duty Amendment Bill of 2022 and the Income Tax (Amendment) Bill of 2022.

Parliament, however, did not pass these bills unanimously because of stiff opposition from the Minority.

Source: YEN.com.gh