The Ministry of Finance says it has acknowledged concerns raised by Organised Labour regarding the proposed implementation of Value Added Tax (VAT) on residential customers' electricity consumption.

In a press statement released on Tuesday, January 30, the Ministry announced plans to conduct extensive meetings with Organised Labour and other key stakeholders in the coming weeks to ensure their input in the decision-making process.

The statement appealed to Organised Labour, ECG, NEDCO, and all stakeholders to show restraint, foster a conducive environment for constructive dialogue and a swift resolution of the impasse.

The Ministry's remark comes after Organised Labour threatened an industrial action over the implementation of the VAT on domestic electricity consumption.

On Wednesday, January 24, Organised Labour bemoaned the imposition of VAT on a certain category of electricity consumers and called on the Finance Ministry to withdraw the directive.

Also read: Organised Labour threatens industrial action over VAT on electricity – Angel Carbonu

This was in line with the Trades Union Congress (TUC) issuance of a seven-day ultimatum to the government, demanding the withdrawal of the imposition of VAT on electricity consumption beyond the lifeline threshold.

Also read: You have 7 days to revoke VAT on electricity – TUC to government

The Ministry also highlighted the positive strides the country has made in implementing the Post Covid-19 Programme for Economic Growth (PC-PEG), citing achievements such as surpassing growth targets, decreasing inflation, enhanced fiscal and external positions, a more stable exchange rate, and a reduced Monetary Policy Rate.

Additionally, the Finance Ministry reaffirmed the government's commitment to collaborate with all stakeholders to sustain progress and promote macroeconomic stability and inclusive growth.