Ghana gov’t to engage organized labour on proposed VAT on domestic power consumption

   The Government of Ghana said on Tuesday it would confer with the leadership of organised labour and other stakeholders over the proposed Value Added Tax (VAT) on domestic electricity consumption, a statement from the finance ministry has said.

   The government’s decision to hold “extensive dialogue” with labour unions and other key stakeholders in the coming weeks followed the stiff opposition by organized labour to the proposed tax measure.

   The statement appealed to Organised Labour, Electricity Company of Ghana and the Northern Electricity Distribution Company, and all other stakeholders to show restraint, foster a conducive environment for constructive dialogue, and a swift resolution of the impasse.

   “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 statement said.

   The government also urged organized labour and all other stakeholders to exercise restraint to “facilitate constructive dialogue towards a quick resolution of the impasse.”

   The Ghanaian government has been looking for ways to shore up revenue amid the International Monetary Fund-supported economic reforms to salvage the ailing economy.