At a Cabinet meeting on Friday, February 2, 2024, it was apparently decided unanimously to rescind the previously approved practice of levying a 15% Value Added Tax (VAT) on electricity.
This suggests that power users won't have to pay the controversial 15% VAT on top of their utility bills, according to Asaase Radio.
After the proposed strategy was met with opposition from organizations like the Trade Unions Congress (TUC) and was previously approved by Parliament and the Cabinet, the administration decided to reconsider and make a different decision.
In addition, the administration has consented to hold talks with the International Monetary Fund (IMF) in order to come to an agreement regarding how to make up for the expected revenue deficit that will arise from the policy's abandoning of the value-added tax on energy.
More spending cuts might be part of the solution to this deficit.
Sources familiar with the Cabinet decision indicate that clarity on the policy's final conclusion—whether it will be drastically scaled back or eliminated entirely—will become apparent after discussions with the IMF.
According to Asaase news, “The position currently is that the 15% VAT on electricity is off, and it is likely it could either be off totally or significantly slashed,”
On February 2, 2024, Organized Labor convened a conference in reaction to the direction from ECG and NEDCO regarding the imposition of a 15% VAT on household electricity consumption.
Following that, they made the decision to hold a national protest on Tuesday, February 13, 2024, calling on the government to revoke the order.
Organised Labour has informed all 16 regional commanders and the Inspector General of Police of its plans to hold the demonstration. In addition, from Monday, February 5, 2024, to Monday, February 12, 2024, employees of Organized Labor, both in the public and commercial sectors, are required to wear red bands to work.
The press release from Organised Labour went on to say that the leadership will appropriately provide information about the route of the demonstration as well as other communications.
Organized Labor retains the ability to call a meeting and determine whether to call for a national strike if the VAT mandate is not rescinded after the protest.
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