Mahama Backs TUC’s Call For Removal Of VAT On Electricity: "Government Must Reverse Its Decision”

Mahama Backs TUC’s Call For Removal Of VAT On Electricity: "Government Must Reverse Its Decision”

  • 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

Former President John Mahama has thrown his weight behind a call by the Trades Union Congress (TUC) for the government to halt the implementation of a Value Added Tax (VAT) on electricity for specific consumers.

Mahama reiterated concerns that the tax would worsen the economic conditions of Ghanaians.

John Mahana on VAT on electricity
John Mahama is the National Democratic Congress flagbearer. Source: Facebook/@John Dramani Mahama
Source: Facebook

In a Facebook post, the former president said Ghanaians would continue to suffer as long as the New Patriotic Party remained in power.

"Implementing VAT on electricity consumption will increase tariffs by almost 21% and exacerbate the hardship on Ghanaians. This will affect the prices of goods, services, and transport fares," he said.

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The former president questioned why, in his view, the government was seeking to impose further hardship on Ghanaians despite the influx of $600 million from the IMF.

Mahama further said his National Democratic Congress was ready to address the country’s economic challenges if it wins power in the 2024 election.

In an earlier address, the TUC gave the government until the end of January 2024 to withdraw the new tax on electricity consumption above the lifeline level.

The union threatened a strike if its ultimatum was not met.

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.

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

Ghanaians support Mahama's call

Many Ghanaians took to the comments section of Mahama's Facebook post to support his call for the VAT on electricity for some Ghanaians to be dropped:

Randolph Mensah wrote: "Ooh, what a fatherly talk!! At least you are giving your people some hope and confidence. Keep it up!!."

Nii Lartey wrote: "The vision leader.... You are blessed and highly favored."

Isaah Mohammed Bataglia wrote: A clear exhibition of wisdom, knowledge, experience and visionary leadership. May the good Lord continue to keep you safe for mother Ghana.GRA cashing out from betting tax

GRA introduces new taxes

YEN.com.gh reported earlier that the Ghana Revenue Authority accrued GH¢15 million in its first two months from its new tax on sports betting winnings.

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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.

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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.