Government in response to mounting pressure, has opted to defer the intended enforcement of a 15 percent Value Added Tax (VAT) on the local consumption of electricity.

A press release from the Ministry of Finance, dated Wednesday, February 7, conveyed the directive instructing both the Electricity Company of Ghana and the Northern Electricity Distribution Company to halt the imposition of the levy.

The statement read, "On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagement with key stakeholders, including Organised Labour."

"The Ministry expects that these engagements will birth innovative, robust, and inclusive approaches to bridging the existing fiscal gap while bolstering economic resilience."

In the wake of this development, Organised Labour, which had threatened a nationwide protest against the VAT implementation, maintained its stance that only a complete withdrawal of the tax would prevent the planned demonstration scheduled for next Tuesday, February 13.