The Vice Chairman of the Trade Union Congress, Ken Koduah, has urged the government to prove its financial capability to the International Monetary Fund (IMF) through other means beyond the imposition of VAT on electricity consumption.
The TUC has been protesting government’s imposition of a 15% VAT on electricity that is yet to take effect.
According to the TUC, the imposition of the VAT will worsen the already dire economic conditions of businesses and individuals in the country.
They are demanding the VAT be removed or they will embark on a strike to press home their demands.
Speaking on the AM show on JoyNews, Mr. Koduah noted that government should look to other sectors of the economy to raise the revenue it seeks.
He said there are numerous major organisations with outstanding tax obligations to the government and urged the government to pursue those.
“I pay VAT; currently, we buy from the shop. We buy for a week. We pay hotel bills and restaurant bills. Find out how much of that goes to the government. Find out how many MMDAs are owing VRA withholding taxes.”
He argued that overburdening poor workers with more taxes will prove counterproductive.
He urged the government to find better alternatives other than worsening the economic plight of ordinary Ghanaians.
“Let me focus on the political class. We see them all the time. Some of them work with you; they leave employment and become politicians, and they have so much to spend on campaigns. Is somebody asking them what income they are earning and what taxes they are paying?
“Is it the poor workers who must always bear this heat? Is it because it is the easiest way to collect the hanging fruit? But is that the right way to promote social development? We are very determined that we would not allow this to happen, not only because it is going to affect the poorer worker, but because it is just not right.”
Source: Ghana News
