VAT on electricity: Govt to hold extensive dialogue with Organised Labour

Ministry of Finance Ken Ofori-Atta has disclosed extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks on the VAT on electricity.

The stakeholder dialogue, as stated by the Finance Ministry in its statement dated January 30, 2024, is aimed at ensuring stakeholder buy-in.

Organised Labour has kicked against the government’s implementation of the VAT on electricity consumption by residential customers.

“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,” the Ministry said in its statement.

The Finance Ministry 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.”

“The Ministry therefore appeals to Organised Labour and all stakeholders, including ECG and NEDCO, to exercise restraint to facilitate a constructive dialogue towards a quick resolution of the impasse.”

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.

Source:mypublisher24