The New Patriotic Party’s (NPP) official X account formerly Twitter has shared a news report from Asaase Radio indicating that Cabinet has reportedly dropped the 15 percent VAT on electricity.

However, there has been no official statement from government sources regarding this matter at the moment. Government spokespersons have remained tight-lipped on the issue.

Star News sources say the government will engage the International Monetary Fund (IMF) before any decision is reached.

This comes a few days after the ruling New Patriotic Party, National Organizer Henry Nana Boakye criticized the government for introducing a tax that will exacerbate the cost of living crisis for Ghanaians.

He exclaimed on Peace FM’s Kokrokoo Morning Show; “I’m the National Organizer of my party. I listen to my people… this must be withdrawn in addition to the VAT on electricity.”

Meanwhile, the Trade Union Congress and other Labour Unions have planned a nationwide demonstration on February 13, 2024, urging the government to withdraw the directive to implement the 15% VAT on residential electricity consumption.

The labour groups have also announced their intent to wear red bands at work from February 5 to February 13 and have hinted at the possibility of a nationwide strike if the VAT directive is not withdrawn after the demonstration.

The Ghana Union of Traders Association (GUTA) has also kicked against the implementation of the proposed Value Added Tax on electricity arguing the taxes will have an adverse economic impact on businesses.