Excessive tax policies may heighten cost of living – Federation of Labour

The Ghana Federation of Labour (GFL) has cautioned the Government to be mindful of overburdening the manufacturing sector with tax policies as that may result in widespread unemployment, increased cost of living, and endanger national security.

Mr Abrahma Koomson, the GFL Secretary, in a statement said, with the current financial crisis and taking into account the plight of workers, any additional tax burden would collapse the industrial sector.

He urged Parliament, in pursuant of its constitutional mandate, to guarantee good governance for the benefit of the ordinary person by monitoring the Executive’s spending.

He said a petition was submitted to the Speaker of Parliament on February 3, 2023, drawing his attention to the numerous taxes that already distressed companies were paying and the damage additional taxes would cause to investments.

He said organised labour considered it appropriate to draw Parliament’s attention to the economic challenges the poor and vulnerable faced and the need to avert that as well as any social upheavals in the country.

The Association of Ghana Industries, Ghana Union of Traders Association, Food and Beverage Association of Ghana, and Importers and Exporters Association have expressed similar concerns about the tax imposed on businesses by the government.

Parliament approved three new taxes last Friday despite calls by several groups to reject the revenue policies.

Government intends to generate about 4 billion cedis from the new taxes to take in more revenue and also secure a 3 billion dollar bailout from the International Monetary Fund.

 

Source: GNA