Ahead of the 2024 budget declaration, the Ghana Federation of Labour (GFL) has urged that the government reassess nuisance taxes in Ghana, particularly excise levies on the beverage industry.
According to the Federation, the review is an "urgent necessity".
In a statement signed by the Secretary-General, Abraham Koomson, these "burdensome" taxes contribute to stunted growth for businesses while calling on the government to "alleviate these challenges and foster a more conducive environment for businesses and workers."
Addressing the effects of the taxes on the pockets of Ghanaians, it stated that the situation makes it harder for citizens to support their families and satisfy basic necessities.
The reversal of these taxes, the release said, will not only "alleviate the financial strain on workers but also stimulate economic activity by increasing their purchasing power, leading to increased consumer spending and business growth".
To ensure a fair outcome, the GFL additionally required that stakeholders, including corporations, labour unions, and subject-matter experts, be included during the review process.
The Ghana Federation of Labour reiterated its commitment to the rights and interests of workers while calling on the public to join them in advocating for a fair and equitable tax system that encourages investment, stimulates economic growth, and improves the lives of citizens.
Read the full statement below:
FOR IMMEDIATE RELEASE
28-10-2023
PRESS STATEMENT
GHANA FEDERATION OF LABOUR DEMANDS REVIEW OF NUISANCE TAXES AHEAD OF 2024 BUDGET READING
The Ghana Federation of Labour (GFL) emphatically reiterates calls for a comprehensive review of nuisance taxes in Ghana, specifically Excise duties on Beverage industry ahead of the 2024 BUDGET STATEMENT AND ECONOMIC POLICY OF GOVERNMENT to consider job creation as a priority.
These burdensome taxes have hindered economic growth, stifled business development, and placed an unfair burden on hardworking Ghanaians and effective operation of industries. It is imperative that the government takes immediate action to alleviate these challenges and foster a more conducive environment for businesses and workers.
The Ghana Federation of Labour firmly believes that the review of nuisance taxes and excise duties, stated above, is an urgent necessity. These taxes, often excessive and unnecessary, have impeded the growth and competitiveness of local businesses, stifling innovation, investment, and job creation. The burden they impose on businesses is detrimental to their sustainability and ability to contribute to the economic development of Ghana. It is time for the government to acknowledge the adverse effects of these taxes and take decisive action to address them.
Furthermore, the impact of these nuisance taxes on workers cannot be understated. Ghanaian workers have borne the brunt of these taxes, with their disposable income significantly reduced, limiting their ability to meet their basic needs and provide for their families. The reversal of these taxes will not only alleviate the financial strain on workers but also stimulate economic activity by increasing their purchasing power, leading to increased consumer spending and business growth.
The Ghana Federation of Labour urges the government to prioritize the review of these nuisance taxes in the 2024 Budget. The Ghana Federation of Labour demands that this review should be conducted in consultation with stakeholders, including labor unions, businesses, and experts in the field, to ensure that the outcome is fair, equitable, and supportive of sustainable economic growth. The government must seize this opportunity to demonstrate its commitment to the welfare of workers and businesses by implementing tax reforms that promote a conducive business environment and enhance the standard of living for all Ghanaians.
We call on all Ghanaians to join us in advocating for the review of nuisance taxes. It is essential that we raise our voices collectively to demand a fair and equitable tax system that encourages investment, stimulates economic growth, and improves the lives of our fellow citizens. Together, we can create a Ghana where businesses thrive, workers prosper, and the economy flourishes.
The Ghana Federation of Labour remains committed to continuously engaging with the government, industries and other stakeholders to ensure that the review of nuisance taxes and excise duties becomes a top priority. We will continue to champion the rights and interests of workers, advocating for a tax system that supports sustainable economic development and enhances the well-being of Ghanaians.
About Ghana Federation of Labour (GFL):
The Ghana Federation of Labour is a prominent labor organization in Ghana, dedicated to safeguarding the rights and welfare of workers across various sectors. GFL strives to promote fair labor practices, advocate for workers’ rights, and contribute to the socioeconomic development of Ghana.
Abraham Koomson
Secretary General
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Abraham Koomson- GFL Secretary