Organized labor has decided to suspend its scheduled demonstration protesting the Value Added Tax (VAT) on electricity consumption, following the government’s recent decision to suspend the controversial tax.
The announcement was made by the Secretary General of the Trades Union Congress (TUC), Dr. Anthony Yaw Baah, during a press conference held in Accra on Friday, February 9.
The decision to suspend the demonstration comes after the government directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) to halt the implementation of the proposed 15% VAT on electricity consumption.
The Finance Ministry issued a formal directive in this regard, stating that further engagements with key stakeholders, including Organized Labour, would take place.
The move to impose VAT on electricity consumption had faced significant opposition from various quarters, with critics labeling it as insensitive and anti-business.
The Food and Beverage Association of Ghana (FABAG) was among those who expressed discontent with the tax measure.
Despite the suspension of the VAT on electricity, the Finance Ministry remains optimistic that ongoing engagements will lead to positive outcomes, bridging the fiscal gap while also supporting business growth and economic resilience.
