Organised labour to demonstrate against excessive taxation

The Ghana Federation of Labour (GFL), strategic business stakeholders, in partnership with organised labour, are mobilising to protest the imposition of the three additional levies.

Organisational Labour and other stakeholders will protest 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 Mr. Abraham Koomson, GFL Secretary General.

According to the GFL Secretary General, the three new taxes imposed by the government—the Excise Duty Amendment Act, the Growth Sustainability Levy Act, and the Income Tax Amendment Act—are a wake-up call to labour unions to mobilise workers and express massive discontent through agitations, demonstrations, and industrial action.

Mr. Koomson noted on the Ghana News Agency Industrial News Hub platform in Tema that excessive taxes have a big effect on hobbling enterprises and driving industries out of production.

In order to convey the seriousness of the situation to the government, he said that there must be a sense of unity among labour unions with a constant lamentation on disastrous economic policies in order for the government to listen to the plights of workers.

"This time, we need the massive mobilisation of workers to hit the streets consistently until the government hears the plight of factories and ordinary citizens who face self-inflicted economic hardship on a daily basis," he stated.

Mr. Koomson emphasised that mobilisation is the first step in a series of measures to put pressure on the government over its over-taxation policy and that if there is no consistent determined action, the administration would ignore the plight of workers.

According to Mr. Koomson, the three additional levies will bankrupt the few remaining industries and firms, leaving the bulk of people unemployed.

He suggested that the government prioritise job creation over taxation since "the targeted revenue to be accumulated may not be achieved if businesses are overburdened with taxes."

He stated that some businesses had ceased operations in order to examine market trends and consumer reactions to the increased taxes.

Development and Sustainability According to the government, the levy is meant to increase income in order to promote economic growth and fiscal sustainability.

The levy is charged on the earnings before taxes of corporations and institutions, as well as on production in the case of mining and upstream oil and gas industries.

The Income Tax Act, 2015 (Act 896) is being amended to adjust the income tax rates for individuals and add a new income tax band, as well as to implement a withholding tax rate on the realisation of assets and obligations, as well as lottery wins.

The Excise Duty Act, 2014 (Act 878) intends to revise excise duty rates for cigarettes and other tobacco goods in order to comply with the Protocols of the Economic Community of West African States (ECOWAS) and generate revenue to counteract the negative effects of these excisable commodities.

In order to increase revenue, it also proposes to hike excise duty on wine, malt drinks and spirits, as well as levy excise duty on sweetened beverages, electronic cigarettes and electronic liquids.

Mr. Francis Ameyibor, Ghana News Agency's Tema Regional Manager, also urged the media to educate the public on 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 crucial input to the government, stating 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."

—CDA Consult II Contributor