The Minority Caucus in the Ghanaian Parliament has announced its full solidarity with the organized labour of the Trades Union Congress (TUC) in their call for a nationwide demonstration on 13th February 2024.
The demonstration aims to pressurize the government into removing the Value Added Tax (VAT) on domestic consumption of electricity.
The Minority Caucus, consisting of members from the National Democratic Congress (NDC), expressed their support for the labor union’s demands to alleviate the suffering of Ghanaians caused by the implementation of new taxes.
The taxes, which were exclusively passed by the New Patriotic Party (NPP) Members of Parliament, came into effect in January 2024, leading to widespread complaints about increased hardship and financial burdens imposed on citizens.
During the parliamentary debate on the 2024 budget statement, the NDC Minority Caucus strongly resisted the implementation of new taxes, citing their regressive nature and the adverse effects they would have on households’ disposable incomes.
The caucus voted en bloc against the approval of the budget, which included these tax measures, while the NPP Majority Caucus voted in favor of them. The NDC Minority Caucus denounced the government’s introduction of new taxes, which contradicted its promise to shift the economy from taxation to production.
They highlighted the negative impact on citizens and businesses in Ghana, stating that the burden on already struggling households would further erode their standard of living.
The Minority Caucus expressed deep concern that the additional taxes would exacerbate poverty in the country, considering that the United Nations Development Programme (UNDP) already reported a significant increase in extreme poverty under the current Akufo-Addo/Bawumia administration.
Additionally, they warned that businesses, already facing high operating costs, would be further burdened, potentially leading to their collapse.
The NDC Minority Caucus strongly believed that the government should prioritize addressing existing tax exemptions pending before the Finance Committee of Parliament, amounting to GHC5.5 billion (USD449 million), rather than burdening citizens with new taxes.
They argued that these exemptions, combined with those awaiting processing, totaled GHC12.5 billion, exceeding the GHC11 billion projected to be generated by the new taxes. Furthermore, the Minority Caucus criticized the government’s reckless use of public resources and alleged widespread corruption within the Akufo-Addo/Bawumia administration.
They emphasized that, apart from government appointees and their allies, the 2024 budget had no meaningful benefits for the majority of Ghanaians.
The Minority’s strong opposition to the new taxes was motivated by their belief that inflation and excessive fiscal adjustments had already eroded a significant portion of the average Ghanaian’s disposable income.
They specifically highlighted the imposition of VAT on selected items, including textbooks, exercise books, newspapers, and publications, as well as VAT on domestic transportation of passengers and the expansion of entities subject to communication service tax. Despite the Minority Caucus’s fervent resistance, the NPP Majority Caucus, along with the independent candidate in Parliament, united in their unwavering support for the new taxes.
The Minority Caucus expressed concerns that endorsing the government’s proposed increase in taxes would further push Ghanaians into extreme poverty, but their calls to abandon these regressive and insensitive tax measures were unfortunately disregarded.
The Minority’s solidarity with organized labor represents a growing movement against the government’s tax policies and the negative effects they have on the welfare of Ghanaians.
The demonstration, scheduled for next week, is expected to attract thousands of workers, civil society groups, and opposition parties, who will march through the streets of Accra and other major cities to demand the government’s immediate action to address the economic crisis.
The demonstration will also serve as a platform for the NDC Minority Caucus to mobilize support for their alternative policies, which they claim will provide relief and prosperity for Ghanaians.
The caucus has outlined a number of proposals, such as reducing the cost of electricity, abolishing nuisance taxes, increasing the minimum wage, expanding social protection, and investing in infrastructure and human capital development.
The NDC Minority Caucus has vowed to continue to hold the government accountable and to champion the interests of the people. They have also urged Ghanaians to join them in the demonstration and to express their dissatisfaction with the government’s performance.
They have assured the public that the demonstration will be peaceful and lawful, and that they will respect the COVID-19 safety protocols. The government, on the other hand, has dismissed the demonstration as a political stunt by the NDC Minority Caucus and their allies.
The government has defended its tax policies as necessary and prudent measures to stabilize the economy and to generate revenue for development.
The government has also accused the NDC Minority Caucus of being hypocritical and irresponsible, as they had introduced similar taxes when they were in power.
The government has warned the demonstrators to refrain from any acts of violence or vandalism, and to respect the authority of the security forces.
The government has also urged Ghanaians to ignore the propaganda of the NDC Minority Caucus and to trust in its vision and agenda for the country. The demonstration, therefore, promises to be a showdown between the government and the opposition, as well as a test of the public’s sentiment and confidence in the current administration.
The outcome of the demonstration could have significant implications for the political and economic landscape of Ghana, as well as for the future of democracy and governance in the country.