Organised Labour suspends demo, demands complete withdrawal of 15% VAT on electricity

Gideon Nicholas Day

February 9, 2024 1:01 PM

Organised Labour has decided to suspend its initially planned nationwide demonstration against the 15% Value Added Tax (VAT) on Electricity.

General-Secretary-of-the-TUC-Dr-Anthony-Yaw-Baah

The government had previously announced the suspension of the policy for further stakeholder engagement, prompting the labour group to reconsider its protest.

Despite the suspension, Organised Labour is making it clear that their stance on the new tax remains firm.

General Secretary of the Trades Union Congress, Dr. Yaw Baah, emphasized that their commitment to advocating against what he deems as unfavorable tax policies during a news conference held in Accra.

The decision to suspend the demonstration follows an official communication from the government informing the labour group about the temporary suspension of the controversial tax. However, Dr. Baah maintained that their fight against what they perceive as detrimental tax policies is far from over.

Prior to this development, Minority members on the Trade and Industry Committee of Parliament had urged Organised Labour to stand firm in their quest to demonstrate against the 15% VAT imposed on electricity.

Speaking to journalists in Parliament, Yussif Sulemana, the Ranking Member on the Trade and Industry Committee, emphasized that Organised Labour should not relent until the government seeks Parliamentary approval to reduce its expenditure.

"The only thing the government can do is to come to Parliament and say we are reducing the budget expenditure and we are reducing it by a certain quantum of expenditure."

He argued that the government's suspension of the tax had led to engagement with the International Monetary Fund (IMF) and urged Organised Labour not to back down.

"This suspension has led to an engagement with the IMF, and the government is begging, and the IMF will not tone down because they have given you an option, A or B, and you decided to go in for option A, and it is not working. You have already utilized option B, so you have to find a way of resolving, and so I am happy with the TUC that they are not going to listen to the government," Sulemana emphasized.

As the situation unfolds, the suspended demonstration leaves room for continued dialogue between Organised Labour and the government, with the demand for a complete withdrawal of the VAT on electricity remaining at the forefront of their advocacy.