Ghana Tax Burden: Organised Labour Suspends Demonstration Against 15% VAT On Electricity

• Organised labour has suspended its planned demonstration against the controversial tax on electricity purchases
• The decision came after official communication of the suspension of the tax government to the labour group
• Organised labour was set to hold a nationwide protest against the 15% VAT on Electricity on February 13, 2024

Organised labour has suspended its planned demonstration against the 15% VAT on Electricity.

The decision follows the official communication of the suspension of the tax government to the labour group.

Speaking at a news conference in Accra, Secretary General of the Trades Union Congress, Dr Yaw Baah, said his group would continue to advocate against unfavourable tax policies.

Earlier reports indicated the government had already backed away from implementing the unpopular 15% VAT on electricity purchases after some agitation.

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The government had plans to charge the 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.

Bawumia promises to scrap a number of taxes

The New Patriotic Party (NPP) flagbearer, Dr Mahamudu Bawumia, promised to abolish the e-levy and other taxes burdening Ghanaians.

The Electronic Transfer Levy Act imposed a levy of 1% on electronic transfers.

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Bawumia said he would execute these promises if elected president after the 2024 polls.

He was addressing supporters in preparation for his political campaign at the Kofi Ohene Konadu Auditorium at UPSA.

Bawumia also announced that he will abolish the emission tax, tax on betting, and the proposed 15% VAT on electricity tariffs if it exists by January 2025.

He also announced that his government would introduce what he described as a friendly, flat tax regime for Ghana, which would boost individuals and businesses.

Source: YEN.com.gh