The Ministry of Finance has recognized the concerns expressed by Organised Labour regarding the proposed implementation of Value Added Tax (VAT) on residential customers' electricity consumption.

In a press statement issued on Tuesday, January 30, the Ministry revealed its intention to hold comprehensive meetings with Organised Labour and other crucial stakeholders in the upcoming weeks to incorporate their input into the decision-making process.

The statement urged Organised Labour, ECG, NEDCO, and all stakeholders to exercise restraint, create a conducive environment for constructive dialogue, and work towards a prompt resolution of the current impasse.

The Ministry's response comes in the wake of Organised Labour's threat of industrial action over the proposed implementation of Value Added Tax (VAT) on domestic electricity consumption.

On Wednesday, January 24, Organised Labour expressed dissatisfaction with the imposition of VAT on a specific category of electricity consumers and called for the Finance Ministry to retract the directive. This stance was reinforced by the Trades Union Congress (TUC), which issued a seven-day ultimatum to the government, demanding the withdrawal of VAT on electricity consumption beyond the lifeline threshold.

The Ministry's statement also highlighted the country's positive achievements under the Post Covid-19 Programme for Economic Growth (PC-PEG). These accomplishments include surpassing growth targets, reducing inflation, improving fiscal and external positions, achieving a more stable exchange rate, and lowering the Monetary Policy Rate.

Moreover, the Finance Ministry reaffirmed the government's commitment to collaborating with all stakeholders to maintain progress, foster macroeconomic stability, and promote inclusive growth.

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