The Ghana Federation of Labour (GFL), has appealed to Parliament not to approve the 20 percent (20%) excise tax on sweetened fruit drinks and water, as that will be inimical to growth of the economy.
Apart from undermining job creation and denying the State of required revenue, the passage of the proposed tax, it said, would go a long way to worsen growth and development in the private sector and Ghana as a whole.
A statement signed by Abraham Koomson, Secretary General of GFL, stated “The private sector is overburdened and yet to recover from the ravages of COVID-19 and global economic decline.”
“We would rather recommend to the government to broaden the tax base and net and ensure that a large chunk of people not covered by Value Added Tax (VAT) and corporate tax, are drawn into the net.”
Abraham Koomson, Secretary General of GFL
The survival of the local industry, it said, was already threatened by the increased cost of production and the dwindling purchasing power of consumers. It said if the taxes were imposed, most industry players would be compelled to relocate to neighbouring countries, that were offering better and enabling environments for business to flourish.
“While Organised Labour is expecting well-crafted policies to protect Local Industries, the government has slapped an astronomical 30 percent increment in Electricity tariffs and about 50 percent on water for Industry, effective February 1, 2023.”
“There is every reason to appreciate government’s determination to raise revenue to meet its statutory obligations. However, at this stage of the economic crisis facing the country, and when there is uncertainty about investments in bonds ahead of an agreement on the Domestic Debt Exchange Programme, the introduction of such tax is not going to be healthy for the Manufacturing Industries.”
Abraham Koomson, Secretary General of GFL
It said the Federation could not afford to sit on the fence, while watching its members reel under the ever mounting taxations of the local Manufacturing Industry, saying that Companies have drastically reduced staff and there was the threat for more fold-ups.
“We make a passionate appeal to you and rely on your high office to consider the plight of workers and act to save the precarious situation since there weren’t broader consultations with stakeholders prior to the presentation of the Bill to Parliament.”
Abraham Koomson, Secretary General of GFL
Debate on draft of the Excise Duty Amendment Bill, 2022, commenced yesterday in Parliament and Parliament will today, vote on it and two other new bills.
Parliament Must Reject Two New Tax Bills
The Importers and Exporters Association of Ghana (IEAG) says Parliament must reject any new tax bill the government might bring to the House, for approval. According to the Association, they are aware of plans by the Finance Committee of Parliament to present before the house, two new tax bills for deliberation, and possible passage.
“The bills, the Income Tax Amendment Bill, and the Excise Duty Tax, which, according to the Nana Addo-led government, will help shore up Ghana’s revenue, should be rejected by Parliament in all manner.
“We, as an association, believe these two taxes are just a lazy approach by the government that campaigned on moving away from taxation to production to rake in monies with the hope of stabilising the economy.”
Executive Secretary for IEAG, Samson Asaki Awingobit
Executive Secretary for IEAG, Samson Asaki Awingobit, stated in a press release: “It is refreshing to hear the leadership of the National Democratic Congress (NDC) calling on its Members of Parliament to vote out rightly in rejection of the said bills, since it will not in any way inure to the benefit of the ordinary Ghanaian and businesses who are already being folding out of business, due to the already existing draconian taxes.”
The Executive Secretary, further urged the Majority MP’s to also follow suit in rejecting these two bills that will compound the very challenges facing local businesses to thrive.
“As we indicated after the President’s state of the Nations Address by the President on the 8th of March 2023, it is high time the business community rises to demonstrate their displeasure and anger against the Akufo-Addo government, for toying with their fortunes, with their mismanagement of the country’s economy.
“We also call on the Speaker of Parliament to ensure voting on these two bills is made public should they be adopted for passage.”
Executive Secretary for IEAG, Samson Asaki Awingobit
READ ALSO: Parliament To Ballot On Three New Tax Bills Today
