Former President John Dramani Mahama, representing the National Democratic Congress (NDC), has recently expressed his support for Organised Labour’s appeal to the government to abolish the Value Added Tax (VAT) on electricity for residential customers. This stance comes amid concerns that the imposition of VAT on electricity is exacerbating the financial strain on Ghanaians, who are already grappling with economic challenges.
In a detailed statement on Facebook, Mr. Mahama stressed that the VAT on electricity consumption would lead to an almost 21% increase in tariffs. This hike, he argues, would not only affect electricity bills but also have a far-reaching impact on the costs of goods, services, and transportation. The former President called on the government to reconsider and reverse this decision, emphasizing the need to alleviate the financial burden on the citizens.
The issue of VAT on electricity came into the spotlight when Organised Labour, last Tuesday, held a press conference in Accra. During this event, they gave the government a one-week ultimatum to withdraw the VAT for residential electricity users. They argued that this tax imposition would result in an increase in electricity costs by more than 15%, further straining the finances of the average Ghanaian.
Dr. Yaw Baah, the Secretary-General of the Trades Union Congress (TUC), who spoke on behalf of Organised Labour, underscored the urgency of the situation. He warned that if the government did not act promptly to withdraw the VAT, it would face serious backlash from workers across the country.
In addition to addressing the VAT issue, Mr. Mahama criticized the current Akufo-Addo-Bawumia administration. He suggested that the hardships faced by Ghanaians would persist as long as this government remains in power. He also took this opportunity to discuss the responsible utilization of funds, particularly the $600 million recently released by the International Monetary Fund (IMF). He urged the government to be cautious in its expenditure to avoid further economic downturns.
Looking ahead to the 2025 elections, Mr. Mahama reaffirmed the NDC’s readiness to tackle Ghana’s economic issues and provide significant relief to its citizens. He talked about his vision to create more well-paying jobs, highlighting his policy for a 24-hour economy among other initiatives aimed at boosting the nation’s economic growth.
Concurrently, Mr. Mahama is actively engaging in his #BuildingGhanaTour, which he has extended to the Ashanti Region. This three-day tour, which began yesterday, is part of his efforts to connect with the people, understand their concerns, and discuss potential solutions to the problems facing the region and the country at large. This tour exemplifies his commitment to being in touch with the grassroots and understanding the diverse needs and challenges of the Ghanaian populace.
