May 22, 2024

The Trade Union Congress (TUC) of Ghana has rejected the implementation of the 15% Value Added Tax (VAT) on electricity consumption.

According to the TUC, the implementation of 15% VAT on electricity will worsen the hardship in the country.

Addressing their members, the Secretary-General of the Trades Union Congress (TUC) in Ghana, Dr. Anthony Yaw Baah said they will not sit unconcerned for the government to starve the citizens of Ghana despite the resources in the country.

Adding that if care is not taken the government will target water.

“This country called Ghana, and all the resources we have now the government doesn’t even see anywhere to tax. They are taxing our electricity also tomorrow they will tax our water and we are not going to sit down for that to continue. That is why I am saying you are going to get baptism of the fire, we need to fight it until this thing is cancelled. How can you add this to the problems that we have in this country? The lifeline they are talking about is just 30KWH, it used to be 50 they brought it down to 30” Anthony Yaw Baah said.

“If you have two light bulbs in your house and you have a television and if you leave the television on for more than five hours you will pay this tax. And if you have a fridge you are out, you are going to pay the tax on the fridge. Why should this happen in this country? If we don’t resist this tomorrow they will come and tax water, they will say there is a lifeline, this lifeline that they are talking about is two bulbs.” He added.

The Ministry of Finance in a statement said the implementation of VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units in line with Sections 35 and 37 and the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870) has been scheduled for implementation, effective 1st January 2024.

“For the avoidance of doubt, VAT is still exempt for “a supply to a dwelling of electricity up to a maximum consumption level specified for block charges for lifeline units” in line with Sections 35 and 37 and the First Schedule (9) of Act 870.” The statement added.

“The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) are, hereby, requested to liaise with the Ghana Revenue Authority (GRA) to ensure that the implementation of VAT for residential customers of electricity above the maximum consumption level specified for block charges for lifeline units takes effect on Is January 2024, in line with Section 35 and 37 and the First Schedule (9) of Act 870,” Part of the statement read.

But Dr. Anthony Yaw Baah said the 15 % Value Added Tax (VAT) on electricity consumption law was passed in 2013 and no government implemented it but now Ghanaians are suffering because of International Monetary Fund directives.

“This law was passed in 2013, why is it that all these governments have not implemented it, why is it that we are allowing the IMF to detect to us to implement this law now? So comrade you have elected at a time there is a big fight on us and we are going to fight it until we win.” He charged their members.

Ghanaians have expressed their concerns over the implementation of the 15 % Value Added Tax (VAT) on electricity consumption.

According to them, the tax has worsened their burden and therefore calling on the government to as a matter of urgency suspend the 15% VAT on electricity.

But the government has explained that the implementation of the 15% VAT on electricity consumption is part of the government’s COVID-19 recovery program, aiming to generate additional revenue.

Deputy Energy Minister Agyapa Mercer said  it will also help the government to settle debts owed to independent power producers.

Source: Elvisanokyenews.com

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