Organised Labour has suspended its scheduled demonstration against the 15 per cent Value Added Tax (VAT) on Electricity, slated for today, Friday, February 9.
Earlier this year, government proposed the 15% VAT on domestic consumption of electricity. The tax applies to consumptions above the maximum consumption level for lifeline consumers, whose consumption is limited to 30 kilowatt-hours per month.
This decision to call off the protest comes as a result of government’s recent move to suspend the implementation of the controversial tax policy.
At a press conference, the General Secretary of the Trades Union Congress (TUC), Dr Yaw Baah, warned that the demonstration would proceed if the government failed to immediately withdraw the policy entirely.
Organized Labour noted that its members are ready to protest against any future unfavourable tax policies.
Meanwhile, the Ministry of Finance formally communicated with Organised Labour regarding the suspension of the policy’s implementation.
In a letter dated February 8, 2024, the ministry indicated that it has instructed the Electricity Company of Ghana and NEDCO to cease the implementation of the controversial policy.
The government in adherence to the distress calls of members of Organized Labour to suspend the policy looks forward to future engagements with Organized Labour and other key stakeholders