TUC TO GOVERNMENT OVER VAT ON ELECTRICITY

The TUC, or the Trades Union Congress, is the largest trade union federation in Ghana, representing over 500,000 workers from various sectors1. The TUC has recently expressed its opposition to the government’s decision to impose a 15% Value Added Tax (VAT) on electricity consumption above the lifeline. The lifeline is the minimum amount of electricity that is subsidized for low-income households.

The TUC argues that the new tax will increase the cost of living and burden the workers, especially those who have been affected by the Covid-19 pandemic. The TUC has given the government until the end of January to withdraw the new tax, or face possible industrial action.

They also demand that the government should improve the quality and reliability of electricity supply, as well as reduce the wastage and corruption in the energy sector.

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