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8th February 2024 12:30:25 PM
2 mins readBy: Chris Kodo

The government of Ghana has stopped its plan to put a 15% tax on power because people were very angry about it and thought it would make living expenses even higher. The government wanted to charge VAT on people who use electricity at home. The worker's unions didn't like the new tax and said they will have protests all over the country next week. Officials now say that the plan has been postponed until discussions are held to solve the argument. A few days after the government started charging a fee for fuel emissions, people had different reactions to it. Ghanaians must now pay a yearly fee for the carbon emissions that come from their cars or trucks that run on petrol or diesel. Critics worry that the extra taxes could make the economy even worse, making it harder for people to afford things like gas that they need to live. The finance ministry told the two main power companies to stop adding the new tax for now. This is to talk a lot and to get support from people in the industry and labor unions, because there are serious concerns about how this will affect consumers and businesses. "The government wants the electricity companies ECG and NEDCO to stop charging VAT for now. They need to talk to important people like organized workers before they can start again. " The TUC said the government has not told them officially about its decision. So, the protests that are supposed to happen next Wednesday are still happening according to Joshua Ansah, who is the TUC's deputy secretary general. He told the media. Trade unions believe that adding more taxes will make it harder for families and companies, making the cost of doing business even more expensive. "We told the government that we can't afford to pay VAT on electricity. We want the tax to be removed right away," Mr Ansah said. Ghana is facing its worst economic problem in a long time, and the government is working hard to make more money. It agreed to a $3 billion (£2. 4 billion) rescue plan with the International Monetary Fund (IMF) to help with the crisis. For many years, Ghana has not had enough electricity, causing frequent power outages called "dumsor" in the Akan language. The country in West Africa gets a lot of its power from water and heat, but these sources are not always taken care of well. In recent years, the country has started depending a lot on gas for making electricity, and if there is not enough gas, then there are power cuts.
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