Ghana Federation of Labour kicks against proposed VAT on electricity

The Ghana Federation of Labour (GFL) has opposed the proposed introduction of Value Added Tax (VAT) on electricity.

The union is also calling for the removal of the Excise Duty Amendment (No.2) Act 2023 (Act 1108) and other nuisance taxes such as the COVID-19 levy.

The GFL believes it is crucial for government to show a commitment to improving fiscal discipline through realistic expenditure cuts.

They urge the government to avoid the temptation of introducing new projects during this election year and to focus on controlling inflation and stabilizing the cedi to restore confidence among investors.

This stance was outlined in a resolution adopted at the GFL’s Extra-Ordinary Delegates Congress, held in Tema, Greater Accra Region, on July 23-24.

The resolution, co-signed by GFL General Secretary, Abraham Koomson and President Caleb Nartey and dated July 24, 2024, highlighted the severe impact of Ghana’s current economic crisis.

The union noted the associated tax burden on businesses, particularly in the manufacturing sector, and the depreciation of the cedi, which is creating uncertainty and threatening job sustainability as companies continue to scale down or relocate to neighboring countries.