The Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Ben Arthur, has criticised the Trades Union Congress (TUC) for issuing an ultimatum to the government over the proposed 15 percent Value Added Tax (VAT) on electricity consumption.

According to Arthur, in such situations, dialogue and negotiations are the most effective tools for addressing concerns.

Speaking on JoyNews' Newsfile programme on Saturday, January 27, Mr. Arthur emphasized the government's need for revenue and insisted that it is the responsibility of all Ghanaians to contribute.

"The government needs to mobilise revenue and it must come from us. But of course if there is a section of the public especially the public sector workers are aggrieved, there is a need for dialogue and demonstrations and ultimatums might serve their purpose, but that is not the best of approach. Dialogue is the way forward."

The TUC has issued a seven-day ultimatum to the government, demanding the withdrawal of the imposition of Value Added Tax (VAT) on electricity consumption beyond the lifeline threshold.

Dr. Yaw Baah, the Secretary General of TUC, highlighted the adverse impact of this move on the livelihoods of ordinary Ghanaians, particularly pensioners and those with low incomes.

During a press conference on Tuesday, January 23, Dr. Baah emphasised that the impoverished population in the country cannot afford to bear the additional tax burden.

• Read also: You have 7 days to revoke VAT on electricity – TUC to government

He called on the government and its agencies to promptly retract the implementation of the proposed tax.

“It’s always the poor people in this country, including pensioners, who bear the brunt. And we should not allow that to continue. Organised labour, we have come together and our message to the government is very simple, we cannot pay VAT on electricity.

“We will not pay it today or tomorrow. Organised labour is demanding the immediate withdrawal of the letter, and another directive from the Finance Minister to Ghana Grid Company (GRIDCo), ECG to stop the implementation of the VAT on electricity. We are giving the government, up to January 31, 2024, to withdraw the letter,” Dr Yaw Baah said.

In response to the ultimatum, Ben Arthur, the Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), criticised the TUC for this approach, asserting that dialogue and negotiations are more effective means of addressing such issues.

Mr. Arthur insisted that the government needs revenue, and all Ghanaians must contribute.

Finance Minister Ken Ofori-Atta had instructed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the 15 percent VAT on electricity consumption as part of the government's COVID-19 recovery programme to generate additional revenue.