Ghana Federation of Labour warns against overtaxing investors

April 11, 2023

The Ghana Federation of Labour (GFL) has cautioned the government against the consistent introduction of new taxes in the country, which is a threat to the nation's economic development.

According to the Secretary General of GFL, Mr Abraham Koomson, the numerous taxes could have an adverse effect on the operations of companies that contribute to the improvement of the standard of living of Ghanaians by paying salaries and social security.

Mr Koomson urged the government to avoid compelling factories to move from the country, stating that some companies had already begun to reduce their workforce, while others were planning to shut down soon.

He cautioned that the closure of the companies would adversely affect government revenue for its development programmes and increase the unemployment rate in the country.

The GFL Secretary-General stressed that if the local companies were not revived for the survival of the country, foreign countries investing in the country must not be discouraged. He urged the government to consider the implications of the Excise Duty Bill of 2022 on manufacturing industries, saying it would cripple companies and increase unemployment.

Mr Koomson stated that the new laws are rushed and passed without proper consultation to weigh the implications on industry and by extension the fate of workers whose job security is guaranteed if industries break even.

He added that the products involved in the taxation among several others on the market were already barely affordable because of the high cost of unit prices triggered by a combination of factors, including water and electricity tariffs which saw an upward adjustment at the beginning of this month.

According to Mr Koomson, high import bills for raw materials and the depreciation of the Ghana were all squeezing out capital by the day.

He said times had been hard, leading to companies having to adjust the salaries of workers, and break even to sustain operations, and the suspension of the new 20 per cent bill would boost investor interest, guarantee sustained revenue inflows, and create more jobs.

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