The Organised Labour unions are insisting on their demand for the complete withdrawal of the 15 per cent Value Added Tax (VAT) imposed on electricity.

Currently, 35 labour unions are in a crucial meeting to decide whether to declare a strike.

This follows government's refusal to retract a directive to the Electricity Company of Ghana (ECG), mandating the charging of a 15 per cent VAT on electricity consumption.

In a press statement on Tuesday, January 30, the Finance Ministry acknowledged concerns raised by Organised Labour and called for restraint, promising further dialogue with all interest groups on the directive.

Also read: Finance Ministry seeks dialogue with Organised Labour on domestic power consumption VAT

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

But, speaking to JoyNews, the President of the National Association of Graduate Teachers (NAGRAT)  Angel Carbonu insisted that only a complete withdrawal would convince the unions to withdraw their strike threat.

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

He highlighted that the Finance Ministry's call for restraint has caused confusion, stressing the need for a written withdrawal of the initial directive to the ECG and NEDCO to suspend the VAT implementation on electricity bills.

“So that letter, we haven't seen a copy of that letter withdrawing the initial directive given to these agencies. So the call for all of us, including those who are directed to exercise restraint, confuses some of us. I don't understand it. 

"Now, the difficulty that they are having in applying the charges does not effectively obviate the directive given to them to charge.

"So if by March they can get their act together and the ministry fails to withdraw the letter, it means that they can take retrospective charges,” Mr Cabonu said.

The NAGRAT President stressed that the principle of charging VAT on electricity bills threatens the survival of organised labour as consumers of electricity.