ICU urges government to act swiftly on ultimatum to scrap VAT on electricity

The Industrial and Commercial Workers’ Union, ICU-Ghana, has urged the government to treat with urgency, the seven-day ultimatum issued by organized labour to withdraw the imposition of 15% Value Added Tax (VAT) on electricity consumption exceeding the lifeline threshold.

ICU expresses concern over the adverse impact that tax imposition may have on consumers, businesses and the citizenry as a whole.

Addressing the media, the General Secretary of ICU-Ghana, Morgan Ayawine, emphasized that stakeholders have been consulted to deliberate on the subsequent course of action if the government does not comply with their demands.

“This is a common issue for every Ghanaian including the working people in the country. I want to reiterate the organized labour position in which we are part that we are not sitting aloof, and we mean business. After 31st January if nothing is done about it with regards to the withdrawal of the directive, we will advise ourselves.”

“Already, we have started consulting our structures nationwide. And come 31st January we shall join hands with organized labour and do the respond appropriately”. Mr. Ayawine added.

He further described the 15% Value Added Tax (VAT) on electricity consumption as a nuisance tax.

“There are so many taxes in this country, and we continue to count, and the government is adding on. We at ICU, have demanded without time and number that the government should do away with nuisance taxes. For us, this tax is a nuisance tax. There is no need for a negotiation on this nuisance tax”.

Organized Labour last Tuesday at a press conference held in Accra gave the government a one-week ultimatum to withdraw VAT on electricity for residential customers.

The labour unions said the implementation of VAT on electricity for residential customers would worsen the plight of the “already burdened” Ghanaian since the cost of electricity would go up by more than 15 per cent.

The Secretary-General of the Trades Union Congress (TUC), Dr Yaw Baah, who addressed the press conference on behalf of organised labour, stressed that the government must withdraw the VAT with immediate effect or face the wrath of workers.