Advertisement
Advertisement
Ghana News

Over-Taxation Worsening Unemployment in Ghana – Ghana Federation of Labour

Advertisement

The Ghana Federation of Labour has called on the Government to reconsider some of its economic policies that have resulted in over-taxation, leading to an increase in unemployment in the country. According to Mr Abraham Koomson, the Secretary General of the Federation, most companies are on the verge of collapse due to over-taxation, with some economic policies having negative effects on businesses, resulting in laying off workers.

Speaking at the Ghana News Agency’s Industrial News Hub platform at Tema, Mr Koomson noted that the introduction of three new taxes, the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022, would collapse the few businesses left, and most people would be jobless. He urged the Government to prioritize creating more jobs, rather than over-burdening companies with taxes. He added that the targeted revenue to be accumulated may not be achieved if businesses are over-burdened with taxes.

Advertisement

According to the Government, the Growth and Sustainability Levy is to raise revenue for the growth and fiscal sustainability of the economy. It is imposed on the profit before tax of companies/institutions and on production in the case of mining, and upstream oil and gas companies. The estimated revenue for 2023 is approximately ¢2.26 billion. The levy is subject to review by the finance minister in 2025.

The amendment to the Income Tax Act, 2015 (Act 896) is to revise the rates of income tax for individuals and introduce an additional income tax bracket. It also intends to increase the optional rate for individuals on the gain from the realization of an investment asset, revise the upper limits for the quantification of motor vehicle benefits, and increase the concessional income tax rates.

The Excise Duty Act, 2014 (Act 878), is intended to revise the excise tax rates for cigarettes and other tobacco products to conform with the ECOWAS Protocols and raise revenue to mitigate the harmful effects of these excisable products. It is also intended to increase the excise duty in respect of wine, malt drinks, and spirits and impose excise duty on sweetened beverages, electronic cigarettes, and electronic liquids to increase revenue.

For the most part, the Ghana Federation of Labour is urging the Government to find a balance between revenue collection and job creation. The excessive burden of taxes on companies has led to a reduction in production and, in some cases, to the collapse of businesses. As a result, many Ghanaians are losing their jobs, making it difficult for them to earn a decent living. The Government should consider revising its economic policies to ensure that they support business growth and job creation.

Advertisement
Advertisement

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker!