Ghana Federation of Labour calls for immediate review of nuisance taxes in 2024 budget

The Ghana Federation of Labour (GFL) has issued a resounding call for the government to urgently revisit its taxation policies, particularly concerning the imposition of excise duties on the beverage industry.

In a statement released on October 30, 2023, signed by Secretary-General Abraham Koomson, the GFL contends that these “nuisance taxes” have cast a shadow over economic growth, stifled business development, and imposed an unjust burden on the hardworking citizens of Ghana, as well as hindering the effective operation of industries.

The federation has underscored the immediate need for the government to address these challenges and create a more favorable environment for both businesses and the labor force.

They assert, “The GFL firmly believes that the review of nuisance taxes and excise duties stated above is an urgent necessity,” highlighting the excessive and obstructive nature of these taxes and their adverse impact on local businesses, innovation, investment, and job creation.

The GFL points out that these levies have not only impeded the growth and competitiveness of local enterprises but have also hindered their sustainability and contribution to Ghana’s economic development.

Workers have borne the brunt of these taxes, with their disposable income substantially diminished, impacting their ability to meet basic needs and support their families.

The call for a reversal of these taxes is not just seen as a means to alleviate the financial strain on workers but also as a way to stimulate economic activity by enhancing purchasing power, which, in turn, can lead to increased consumer spending and business expansion.

Furthermore, the GFL insists that the review process should be consultative, involving input from various stakeholders, including labor unions, businesses, and industry experts. This approach is aimed at ensuring fairness, equity, and the support of sustainable economic growth.

The GFL is urging the government to prioritize the review of these “nuisance taxes” in the 2024 budget. They emphasize that such tax reforms can create a more conducive business environment and enhance the living standards for all Ghanaians.

The federation calls upon Ghanaians to unite in their demand for a fair and equitable tax system that encourages investment, stimulates economic growth, and improves the overall quality of life in the country. The vision is one where businesses flourish, workers prosper, and the economy thrives.