TUC urges President not to give assent to VAT increase

Accra, May 1, GNA - Mr Christian Appiah Adjei, Secretary-General of the Trades Union Congress (TUC), on Monday said the workers' movement had petitioned the President not to assent to the Value Added Tax (VAT) Amendment Bill, which seeks to increase the rate from 10 per cent to 12.5 per cent.

He appealed to the government to find a permanent solution to the rapid depreciation of the cedi as "the free-fall of the national currency has the potential of throwing our economy into complete disarray."

Mr Appiah Adjei observed that the new Labour Act aimed at bringing labour matters into modern development trends is seeking to get rid of trade unions. He explained that the new Act is scraping all the gains the unions have struggled for and achieved over the years.

The TUC Secretary-General expressed the hope that comments and suggestions submitted to the Ministry of Employment and Social Welfare with regard to the new law would be taken into consideration to avoid hostile, unfriendly and worse industrial relations.

Mr Adjei said the recent astronomical increases in prices of petroleum products, depreciation of the cedi and galloping inflation have become the lot of Ghanaian workers. He said the "survival of the fittest" approach to economic reforms, which separates economic and human development can never solve the problems of the country.

Mr Adjei called on the government to take a critical look at its economic policies and adopt new ones that de-emphasise increased material output as an end in itself.

The new policies should focus on human development to enhance capabilities and improve the lot of workers, the unemployed, handicapped, women, children and the elderly. He stressed the need for the government to convene another National Economic Forum as contained in this year's budget statement.

Mr Adjei said the forum would enable all stakeholders to evaluate the outcome of the previous economic forums to determine the extent of implementation of recommendations made and the way forward. He called for the introduction of a special unemployment benefit scheme for those, who lose their jobs after contributing to the Social Security and National Insurance Trust (SSNIT) fund.

Mr Adjei also advocated an increase in the number of workers 'representatives on the SSNIT Board to allow workers to have a bigger say in the management of the SSNIT fund.