The organized labor unions are adamant in their demand that the 15% value-added tax (VAT) on electricity be completely removed. Thirty-five labor unions are currently debating whether to call a strike.
This comes after the government refused to withdraw an order to the Ghanaian Electricity Company (ECG) requiring them to impose a 15 percent value-added tax (VAT) on electricity usage.
The Finance Ministry called for moderation and acknowledged the concerns expressed by organized labor in a press release on Tuesday, January 30. The ministry also promised to continue discussions with all interested parties regarding the directive.
The statement made a plea to all parties involved, including organized labor, ECG, NEDCO, and others, to exercise restraint and create an atmosphere that is favorable to productive discussion and a speedy resolution of the impasse.
However, National Association of Graduate Teachers (NAGRAT) President Angel Cabonu emphasized in an interview with JoyNews that the unions would not back down from their strike threat unless they completely withdrew.
He emphasized that confusion has resulted from the Finance Ministry’s call for moderation and emphasized the necessity of a formal withdrawal of the initial directive to the ECG and NEDCO to halt the implementation of VAT on electricity bills.
“So, the letter that revoked the initial directive issued to these agencies—we haven’t seen a copy of that letter. Some of us are therefore perplexed by the call to all of us, including those who are directed to exercise restraint. That is beyond me.
“Now, the challenge they are facing in implementing the charges does not completely negate the order they were given to charge.
“They can file charges retroactively if they can get their act together by March and the ministry doesn’t withdraw the letter,” Mr. Cabonu stated.
The President of NAGRAT emphasized that the idea of adding VAT to power bills puts organized labor’s ability to continue as an electricity user in jeopardy.
