Organised Labour has decided to suspend its planned demonstration opposing the implementation of a 15 percent Value Added Tax (VAT) on electricity.
This decision comes in response to the government’s suspension of the policy for further stakeholder engagement. Despite the government’s willingness to engage with stakeholders, Organised Labour initially threatened to proceed with the demonstration unless the government completely withdrew the new tax on electricity.
The government formally communicated the suspension of the controversial tax to the labour group, prompting Organised Labour to reassess its stance on the planned demonstration. Dr. Yaw Baah, the Secretary General of the Trades Union Congress, emphasized during a news conference in Accra that while they have suspended the protest, their commitment to advocating against what they perceive as unfavorable tax policies remains steadfast.
The suspension of the planned demonstration underscores the complexity of the relationship between the government and Organised Labour regarding tax policies. While the government has shown willingness to engage with stakeholders, Organised Labour’s initial resistance reflects broader concerns about the impact of taxation on the populace. The decision to suspend the protest highlights the importance of dialogue and negotiation in resolving contentious issues between the government and civil society organizations.
The government’s communication of the suspension of the VAT on electricity demonstrates a responsiveness to public concerns and a recognition of the need for further consultation. Driven by the advocacy efforts of Organised Labour and other stakeholders, the government’s decision to suspend the tax underscores the power of collective action in influencing policy outcomes. Moving forward, ongoing dialogue between the government and Organised Labour will be crucial in addressing concerns about taxation and ensuring policies align with the interests of the citizens.
Prior to the decision to suspend the demonstration, Minority members on the Trade and Industry Committee of Parliament had urged Organised Labour to maintain its stance against the 15 percent VAT on electricity. Yussif Sulemana, the Ranking Member on the Trade and Industry Committee of Parliament, emphasized to journalists in Parliament that until the government seeks parliamentary approval to reduce its expenditure, Organised Labour should continue its efforts to compel the withdrawal of the tax.
The only thing the government can do is to come to Parliament and say we are reducing the budget expenditure and we are reducing it by a certain quantum of expenditure.
And so this suspension has led to an engagement with the IMF and the government is begging and the IMF will not tone down because they have given you an option, A or B and you decided to go in for option A and it is not working and you have already utilised option B, so you have to find a way of resolving and so I am happy with the TUC that they are not going to listen to the government, he opined.
