TUC rejects 15% VAT imposition on domestic power consumption exceeding lifeline limit

The Secretary General of the Trades Union Congress (TUC), Dr Yaw Baah has said that Labour cannot accept the imposition of the 15% Value Added Tax on lifeline electricity consumers as it is inimical to workers’ welfare.

He wondered how the government thought it wise to further yoke the suffering worker, despite all the hardship, with the new tax.

He was speaking at the swearing-in ceremony of newly-elected leaders of the Ghana Registered Nurses and Midwives Association (GRNA) at the GRNA head office, Shiashie near Gulf House, Accra on Tuesday, January 17, 2024.

“This country called Ghana, and all the resources we have, now government doesn’t see anywhere else to tax, they are taxing our electricity also. Tomorrow they will tax our water, and we are not going to sit down for that to continue. That’s why I’m saying you are going to have a baptism of fire, we need to fight it until this thing is cancelled”, he told the new executives.

“How can you add this to the problems that we have in this country? The lifeline that they are talking about is just 30kWh. It used to be 50(kWh), they have brought it to 30 and if you have two light bulbs in your house, two, and you have a television, if you leave your TV on for more than five hours, you will pay this tax,” he said, adding that everyone using a refrigerator will be paying as well.

“Why should this happen in this country? If we don’t resist this, tomorrow they will come and tax water. They will say there is a lifeline. This lifeline they are talking about is two bulbs, part of television, maybe half of television, if you switch on your fridge, you will pay this VAT.”

Dr. Yaw Baah said the law imposing VAT on power consumption was promulgated in 2013, and wondered why it is only this government that is interested in its implementation.

“Why is it that we are allowing the IMF to dictate to us to implement it now? So Comrades, you have been elected at a time where there is a big fight on our hands, and we are going to fight it until we win,” he said.

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