Organised Labour has suspended its planned demonstration over the 15 percent Value Added Tax  (VAT) on Electricity.

Despite the suspension of the policy by the government for further stakeholder engagement, Organised Labour threatened to proceed with the demonstration, calling on the government to completely withdraw the new tax.

The decision follows an official communication from the government to the labour group about the suspension of the controversial tax.

Speaking at a news conference in Accra, Secretary General of the Trades Union Congress, Dr Yaw Baah, however, emphasized their commitment to advocating against what he terms unfavourable tax policies.

The Minority members on the Trade and Industry Committee of Parliament had earlier urged Organised Labour not to be swayed in its quest to demonstrate against the 15 per cent VAT imposed on electricity.

Speaking to journalists in Parliament, the Ranking Member on the Trade and Industry Committee of Parliament, Yussif Sulemana said until the government seeks Parliamentary approval to reduce its expenditure, Organised Labour must not relent on its efforts to have the tax withdrawn.

“The only thing the government can do is to come to Parliament and say we are reducing the budget expenditure and we are reducing it by a certain quantum of expenditure.

“And so this suspension has led to an engagement with the IMF and the government is begging and the IMF will not tone down because they have given you an option, A or B and you decided to go in for option A and it is not working and you have already utilised option B, so you have to find a way of resolving and so I am happy with the TUC that they are not going to listen to the government.