Tema-Ghana, May 8, CDA Consult – According to the Ghana Federation of Labour (GFL), major business stakeholders are banding together with organised labour to fight the imposition of the three new taxes.
Organized Labour and other stakeholders will oppose the three new taxes because “companies, the manufacturing sector, importers and exporters, traders’ unions, and the consuming public are overburdened by the government’s over-taxation policy,” according to GFL Secretary General Abraham Koomson.
The three new taxes imposed by the government—the Excise Duty Amendment Act, the Growth Sustainability Levy Act, and the Income Tax Amendment Act, according to the GFL Secretary General—are a wake-up call to labour unions to mobilise workers and express massive discontent through agitations, demonstrations, and industrial action.
Mr. Koomson stated on the Ghana News Agency Industrial News Hub platform in Tema that exorbitant taxes stymie businesses and drive industries out of production.
To convey the gravity of the issue to the government, he stated that there must be unity among labour unions, as well as persistent lamentation of bad economic policies, in order for the government to listen to the plights of workers.
“At this point, we need a massive mobilisation of workers to take to the streets on a regular basis until the government hears the plight of factories and ordinary citizens who face self-inflicted economic hardship on a daily basis,” he said.
Mr. Koomson stressed that mobilisation is the first stage in a series of actions to put pressure on the government over its over-taxation policy, and that if there is no persistent and strong action, the administration would overlook workers’ predicament.
Mr. Koomson believes that the three new levies will bankrupt the few remaining industries and firms, leaving the vast majority of people unemployed.
He advised the government to promote job creation over taxation since “the targeted revenue to be accumulated may not be achieved if businesses are overburdened with taxes.”
He added that several businesses had shut down in order to study market trends and consumer reactions to the tax increases.
Growth and Sustainability The levy, according to the government, is intended to raise income in order to support economic growth and fiscal sustainability.
The levy is levied on corporations’ and institutions’ earnings before taxes, as well as on production in the mining and upstream oil and gas industries.
The Income Tax Act, 2015 (Act 896) is being changed to alter individual income tax rates, add a new income tax band, and establish a withholding tax rate on the realisation of assets and obligations, as well as lottery winnings.
The Excise Duty Act, 2014 (Act 878) proposes to revise excise duty rates for cigarettes and other tobacco products in order to comply with ECOWAS Protocols and create money to offset the negative effects of these excisable commodities.
It also proposes raising excise duty on wine, malt drinks, and spirits, as well as levying excise duty on sweetened beverages, electronic cigarettes, and electronic liquids, in order to increase revenue.
Mr. Francis Ameyibor, Tema Regional Manager of Ghana News Agency, also asked the media to educate the public about the current economic crisis, its overall impact, and the efforts of the government and stakeholders to overcome it.
He also urged the media to provide critical feedback to the government, saying that “the media must strengthen its two-way communication power—feeding the people with vital government policies and explaining their implications, as well as providing feedback to the government on the impact of the policies.”
