Overtaxing investors, threat to Ghana’s development – Organised Labour

The Ghana Federation of Labour (GFL) says the consistent introduction of new taxes in the country is a threat to national economic development.

Mr Abraham Koomson, the GFL Secretary General, who spoke to the Ghana News Agency in Tema, said companies had employees and paid their salaries, as well as social security, contributing to the improvement of the standard of living for Ghanaians hence the numerous taxes could have adverse effect on their operations. .

He advised that government not to compel factories to move from the country because some companies had already begun to reduce their workforce, while others were planning to shut down soon.

Mr Koomson stressed that the closure of the companies would adversely affect government revenue all for its development programmes and increase the unemployment rate in the country.

He cautioned that if the local companies would not be revived for the survival of the country, foreign countries investing in the country must not be discouraged.

The GFL Secretary General urged the government to consider the implications of the Excise Duty Bill of 2022 on manufacturing industries, saying it would cripple companies and increase unemployment.

“The GFL continues to receive calls from Chief Executive Officers of companies and other stakeholders raising concerns that the new laws are rushed and passed without proper consultation to weigh the implications on industry, and by extension the fate of workers whose job security is guaranteed if industries break even,” he stated.

Mr Koomson said the products involved in the taxation among several others on the market, were already barely affordable because of the high cost of unit prices triggered by a combination of factors including water and electricity tariffs which saw an upward adjustment at the beginning of this month.

He added that high import bills for raw materials and the depreciation of the Ghana Cedi were all squeezing out capital by the day.

He said times had been hard, leading to companies having to adjust salaries of workers, break even to sustain operations; and the suspension of the new 20 percent bill would boost investor interest, guarantee sustained revenue inflows, and create more jobs.