The Executive Secretary of the Civil and Local Government Staff Association of Ghana (CLOGSAG), Isaac Bampoe-Addo, has asserted that the planned nationwide demonstration by Organised Labour is inevitable unless the government takes prompt action to withdraw a directive.
Speaking on JoyNews’ The Probe Mr Bampoe-Addo said no institution particularly, the Ghana Police Service can prevent them from hitting the street on the scheduled date, February 13.
“I can assure you that the only thing that can stop us is the withdrawal of this letter. The law says we should just notify the police; the police cannot tell us not to go to our demonstration, so we are just notifying them.
“At this moment, the only thing that can stop this demonstration from happening is when the government, through the Finance Ministry, withdraws this letter directing ECG and NEDCO to implement 15% VAT on electricity,” he said on Sunday.
Mr Bampoe-Addo noted that his association with the 35 other organised labour unions will embark on a mammoth demonstration should the government refuse to withdraw the directive.
His statement comes in the wake of the determined stance of organised labour unions to oppose the implementation of the 15% Value Added Tax (VAT) on residential electricity consumption, as directed by the Finance Ministry to the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO).
On the same show, the President of UTAG, Prof Mamudu Akudugu dismissed the assertion that workers are being unfair to the government.
In his view, it is the other way around since the populace is “suffocated” by taxes.
Emissions levy, VAT on electricity will affect businesses – GUTA
Meanwhile, Ghana Union of Traders Association (GUTA) has voiced its opposition to the proposed implementation of Value Added Tax (VAT) on electricity charges and the imposition of an emission levy.
The association argues that these measures will have severe adverse economic impacts on businesses operating within the country.
In a press release issued on February 4, 2023, GUTA expressed concern about the potentially detrimental consequences of these additional costs, stating that they will only escalate the already high cost of doing business in Ghana.
“The proposed VAT on electricity charges will directly impact businesses, particularly those heavily reliant on electricity for their operations. Such businesses will face increased financial strain, which could potentially lead to reduced production capacity, layoffs, and even business closures and ultimately impede economic progress and dampen job creation opportunities,” portions of the statement read.
Additionally, GUTA highlights the challenges posed by the emission levy, emphasizing concerns over double taxation and the lack of infrastructure for electric vehicles, including charging stations and a reliable power source.
It added that “Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.”
The communique signed by GUTA President, Dr. Joseph Obeng urged government to reconsider these proposed measures and engage in extensive consultations with key stakeholders, particularly the business community, before implementing any new taxation policies.
“It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment.
African Eye Report/Myjoyonline
