Imposition of Taxes: Consultation is important – Kareweh tells govt


The General Secretary of the General Agriculture Workers Union, Edward Kareweh has told the government to engage in stakeholder consultation prior to introducing tax measures. 

He says that the government came into being as a result of the people’s mandate, hence if there is going to be implementation of tax policies, the people should be consulted.

He was speaking in relation to the Value Added Tax on electricity consumption in an interview with TV3’s Keminni Amanor on Hot Issues.

He said “when the government imposed these taxes, there was no engagement, labour was not engaged, labour did not give their consent, labour did not contribute anything to it, from nowhere government gave a directive to ECG to implement VAT.”

Did the government have to consult you? he was asked.

In answer, he said “Why not? are we not Ghanaians? On whose ticket is the government ruling?”

Meanwhile, cabinet has decided to withdraw the controversial 15% VAT on electricity subject to further engagement with the IMF, TV3 Sources can confirm.

TV3’s sources are very close to Cabinet.

Government justified the imposition of the tax as a measure to raise revenue to clear the energy sector debt in a bid to boost the viability of the sector.

However, TV3 understands government may have been forced to backtrack due to the mounting pressure from Labour and other stakeholders. A demonstration has been planned the Trades Union Congress on February 13 against the measure.