Government in the coming weeks will extensively engage the Organised Labour and other relevant stakeholders on the Value Added Tax (VAT) on electricity.

This was announced in a statement issued by the Finance Ministry on Monday.

“The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on the consumption of electricity by residential customers. Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in,” portions of the Ministry’s statement read.

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 VAT, aiming to raise revenue for the COVID-19 recovery programme.

But Organised Labour has strongly kicked against it amidst threats to embark on an industrial action if it is not withdrawn by January 31.

The Trades Union Congress (TUC) also gave the government a 7-day ultimatum to withdraw the directive.

However, the Finance Ministry appealed to all the stakeholders to exercise restraint to facilitate constructive dialogue towards a quick resolution of the impasse.


Below is the full statement: