Rédaction Africa Links 24 with Andreas Kamasah
Published on 2024-02-05 07:58:57
The Ghanaian government has made the decision to drop the value-added tax (VAT) on electricity consumption, and this has sparked a range of responses from various groups and organizations in the country. The revenue shortfall that resulted from this decision has prompted the government to seek alternative measures to make up for the lost revenue. One of the steps that the government has agreed to take is to engage in a conversation with the International Monetary Fund (IMF) to reach a consensus on how to make up for the revenue shortfall through additional spending cuts. This decision and its implications were reported by asaaseradio.com.
This move has left many people in Ghana questioning what options are available to the government, especially after the reported withdrawal of the nuisance tax. According to a source cited by the news portal, the current position is that the 15% VAT on electricity is off, and it is likely it could either be completely removed or significantly reduced. This uncertainty has led to a range of reactions from workers and labor groups in the country.
The Trades Union Congress (TUC) held a meeting and, as a result, resolved that all workers would start wearing red from Monday, February 5, 2024, to signal a massive protest on Tuesday, February 13, 2024, to press home their demand for a total withdrawal of the 15% VAT on electricity consumption. According to a statement from the organized labor groupings, members from both the public and private sectors are expected to wear red bands at work during this period. They also indicated that directives on the route of the demonstrations and all other communications would be communicated by the leadership of organized labor. In the statement, the TUC also warned that if the directive on the VAT is not withdrawn after the demonstration, organized labor would meet and take a decision on when to initiate a nationwide strike.
The resolve of organized labor in Ghana is firm, and they have made it clear that the withdrawal of the tax is non-negotiable. They have indicated that the only action that would avert imminent turbulence and unrest would be a directive from the government to the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) cancelling the tax. This firm stance has set the stage for potential labor unrest and protests if their demands are not met.
This decision by the Ghanaian government to drop the VAT on electricity consumption has sparked a range of responses and actions from various stakeholders in the country. It remains to be seen how the government will respond to these demands and protests and how the situation will unfold in the coming days and weeks.
Read Original article on Pulse News
