Mahama backs organised labour, tells government to reverse plans to collect VAT on electricity

Former President, John Dramani Mahama has backed organised labour's stance that the government should reverse its decision to impose VAT on electricity consumption.

Mr. Mahama, representing the National Democratic Congress (NDC), emphasised the party's readiness to tackle Ghana's economic challenges and provide substantial relief to citizens if it assumes office in January 2025.

Organised Labour had previously rejected the Finance Minister, Ken Ofori-Atta's directive to implement value-added tax (VAT) on electricity consumption, asserting that no Ghanaian should pay such taxes "today or tomorrow."

Mr. Mahama warned that the introduction of VAT on electricity consumption would lead to an almost 21% increase in tariffs, exacerbating the financial strain on Ghanaians.

He highlighted the potential ripple effect on the prices of goods, services, and transport fares.

Shifting his focus to the $600 million IMF fund allocated to the government, the NDC flagbearer expressed that while, under normal circumstances, such funds should provide relief to the struggling Ghanaian populace, it seems that citizens will continue to suffer as long as the Akufo-Addo-Bawumia-led New Patriotic Party (NPP) government remains in power.

Mr. Mahama urged the NPP government to exercise caution, responsibility, and prudence in utilising the IMF's $600 million and any other funds provided by the World Bank and other development partners.

He stressed the importance of strict oversight by the NDC minority in parliament to ensure accountability.

Additionally, the former president disclosed his commitment to engaging the Ghanaian public regularly, outlining his vision to "build the Ghana we want" and create well-paying jobs through initiatives such as the 24-hour economy policy.