Rédaction Africa Links 24 with Gideon Nicholas Day
Published on 2024-02-09 13:01:31
The suspension of the controversial 15% VAT on electricity has sparked mixed reactions from various stakeholders in Ghana. Despite the suspension, Organised Labour remains committed to advocating against what they deem as unfavorable tax policies. General Secretary of the Trades Union Congress, Dr. Yaw Baah, emphasized their commitment 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,” said Sulemana.
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. Sulemana emphasized, “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.”
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.
The suspension of the controversial tax has elicited concerns from various quarters, with Organised Labour remaining steadfast in their opposition to the tax. They are determined to ensure that the government seeks Parliamentary approval to reduce its expenditure, and they believe that the government’s engagement with the IMF will not diminish their resolve to advocate for a complete withdrawal of the VAT on electricity.
Overall, the suspension of the controversial tax has opened a window for continued dialogue between Organised Labour and the government, with both parties working towards finding a resolution to the ongoing issue. The demand for a complete withdrawal of the VAT on electricity remains a top priority for Organised Labour, and they are determined to see this through despite the temporary suspension of the tax.
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