The President of the National Association of Graduate Teachers (NAGRAT), Angel Carbonu, has bemoaned the imposition of Value Added Tax on a certain category of electricity consumers.

In an interview on Top Story on Joy FM, he called on the Finance Ministry to withdraw the directive in line with the trade union's 7-day ultimatum.

According to him, Ghanaians are already burdened with a lot of taxes.

“31^st January, if this directive is not withdrawn unconditionally, Organised Labour does not have a choice but to advise themselves. Let me say it bluntly, we will be engaged in industrial action,” he pointed out.

Asked whether any industrial action will not cripple the economy, Mr Carbonu said organised labour is already crippled economically.

“I don’t see the reason we should be crying for a crippled economy”, he noted.

According to him, the hardship in the country is worsening, with some Ghanaians struggling to make ends meet as their meager salaries are insufficient, mainly due to the burden of settling loans.

“Unfortunately, the people at the helm of affairs seem to have detached themselves from the pain and misery of the Ghanaian worker. People are suffering in this country,” he stressed.

The President of NAGRAT said it appears the sensitivity of government is gone, adding that government is only interested in straightening its books to satisfy the International Monetary Fund at the peril of Ghanaians.

“People make noise in this country that IMF is not the answer to our problems. Now this same IMF is giving us a directive …Today it is electricity, tomorrow it will be water. Only God knows where it will end,” he lamented.

But the External Relations Manager of the Electricity Company Ghana (ECG), Laila Abubakari, says ECG has not yet implemented the 15 per cent Value Added Tax (VAT) on power consumed by customers above lifeline levels.

Although the Ministry of Finance explains the levy forms part of the country’s COVID recovery and must take effect from January, the ECG says it is yet to effect the changes. 

Read also: https://www.myjoyonline.com/government-charging-vat-on-electricity-from-january-1/

She mentioned that, in anticipation of the rollout of VAT on electricity, ECG is engaged in discussions with the Ministry of Finance, Ghana Revenue Authority, and other relevant stakeholders to comprehend the specifics of the tax implementation.

“The VAT announcement that came into effect in January has abhorred a lot of our customers, the truth is that we [ECG] haven’t started implementing it even though the letter says it should have been activated in January,” she said.