Organized Labour has vowed to resist the implementation of VAT on Electricity consumers in the country.

This comes on the back of a communication directed to both the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO), Minister for Finance Ken Ofori-Atta on VAT on Electricity.

The Minister outlined that Value Added Tax (VAT) will be applicable to residential electricity customers exceeding the designated maximum consumption level specified for block charges associated with lifeline units.

However, addressing a section of the media, the Secretary-General of the Trades Union Congress (TUC), Ghana, Dr Anthony Yaw Baah stated that the timing for the implementation is absolutely wrong.

“We are going to make sure we stop the implementation of this VAT. We are not talking about half way what we are saying is that this law was passed in 2013 and no government has implemented it so there must be a reason,” he stated.

Mr. Baah wonders why the government should exempt huge mineral companies and rather impose it on the ordinary Ghanaian.

According to him, there should be a dialogue on the matter because they think the timing for electricity VAT is wrong. 

“Even ECG has come out to say that their systems must be updated so we need time and in the course of that we will discuss all this. We don’t think this is the time to impose VAT on consumers. At the same time you know that the government is removing VAT on those who come to explore big time businesses who have so much money.

“Today I received a letter from book publishers, they are paying VAT, this is not correct. It is not alright and we have to stop these things,” Mr. Baah stated.

Source: Ghana/Starrfm.com.gh/103.5FM