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Pressure Mounts Organized labour gives govt 5 day ultimatum to reduce utility tariffs

This follows a meeting between the leadership of labour and government to deliberate on the recent tariffs increases, taxes and levies on incomes and petroleum products on January 6.

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Organized labour has given government a 5 day ultimatum(January 13)  to reduce utility tariffs and withdraw the recent increases in prices of petroleum products or they” unleash series of nationwide actions”.

This follows a meeting between the leadership of labour and government to deliberate on the recent tariffs increases, taxes and levies on incomes and petroleum products on January 6.

Government after the meeting said it will not reverse the tariff increments considering the impact on the economy and efforts to solve the 4 year old power crisis.

Organised labour had earlier failed to broker a deal with the Public Utilities Regulatory Commission for a reduction in the 59.2% increment in electricity and 67.2% increase in water tariffs(effective December 14,2015).

There is growing anger about the introduction of a new wave of taxes through the implementation of the new income tax law by the Ghana Revenue Authority (GRA) replacing the repealed Internal Revenue Act, (Act 592).Prices of Petroleum products have also increased between 22 and 27% this year following the passage of the Energy Sector Levy (ESL) by Parliament in December, and took effect January 4, 2016.

Organised labour has rejected what it calls the lazy recourse to taxation and its attendant economic and social hardships on the already overburdened Ghanaian.

Labour says it is “disappointed in the manner in which parliament went about the promulgation of the energy sector levies Act, 2015(Act 899)’.

“Organised labour says the increases in tariffs , taxes and levies are reckless and a display of insensitivity on the part of the managers of the economy and accordingly condemns it in the strongest terms”.

See press statement below

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