The Ghana Federation of Labour (GFL) has reiterated calls for a comprehensive review of nuisance taxes in Ghana, specifically Excise Duties on the Beverage industry ahead of the 2024 Budget Statement and Economic Policy of the Government.
According to the GFL in a statement it issued dated October 30, 2023, a review would help prioritise job creation and should be considered as an urgent necessity.
“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 GFL 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.”The Federation said the impact of these nuisance taxes on workers cannot be understated, explaining also that “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 GFL urges the government to prioritise the review of these nuisance taxes in the 2024 Budget. The Federation demands that this review should be conducted in consultation with stakeholders, including labour 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.”
The Statement signed by the Secretary-General of the GFL, Abraham Koomson, called on all Ghanaians to join in the advocacy for the review of the nuisance taxes, saying “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 statement assured that the GFL 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.
Source: Isaac Yeboah