Government has asked Organised Labour to exercise restraint over the implementation of the 15 percent VAT on electricity as it works to have an extensive stakeholder dialogue for stakeholder buy-in.
A statement from the Finance Ministry on the last day of an ultimatum given by Organised Labour for a withdrawal of the proposal said the dialogue will be held in the coming weeks.
In a letter dated January 1, Finance Minister, Ken Ofori-Atta, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the 15 percent VAT, aiming to raise revenue for the COVID-19 recovery programme. Organised Labour kicked against the proposal, calling it irresponsible and unconscionable, especially given the current economic challenges faced by Ghanaians.
At a news conference last week, Secretary General of the TUC, Dr Yaw Baah, highlighted the potential for unrest in the country if the government persists in its decision.
But the Ministry of Finance in a statement, appealed to Organised Labour, the Electricity Company of Ghana (ECG), and the Northern Electricity Distribution Company (NEDCO) to exercise restraint to “facilitate constructive dialogue towards a quick resolution of the impasse.
