Organised Labour has decided to halt its planned demonstration against the 15% Value Added Tax (VAT) on electricity scheduled for Tuesday, February 13. This development follows the government’s recent decision to suspend the implementation of the controversial tax policy.

During a press conference announcing the suspension of the demonstration, Dr. Yaw Baah, the Secretary General of the Trades Union Congress (TUC), cautioned that the protest would proceed if the government did not immediately withdraw the policy entirely. Dr. Baah emphasized that Organised Labour would not hesitate to protest against any future unfavorable tax policies.

Simultaneously, the Ministry of Finance officially communicated the suspension of the policy’s implementation to Organised Labour. In a letter dated Thursday, February 8, the Ministry informed Organised Labour that it had directed the Electricity Company of Ghana and NEDCO to cease the implementation of the contentious policy.

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The government clarified that it suspended the tax on electricity consumption by residential customers pending further discussions with key stakeholders, including Organised Labour. Labour had consistently argued that implementing the new tax would exacerbate the challenges faced by workers already grappling with prevailing economic hardships.