Labour Unions Call For Broader Consultation Before The Passage Of Excise Tax Bill
Labour Unions Call For Broader Consultation Before The Passage Of Excise Tax Bill
The attention of the Ghana Federation of Labour has been drawn to a new Tax Bill in the offing seeking to introduce a 20% EXCISE TAX on locally produced fruit drinks and bottled water.
Speaking at a news conference held in Accra, the general secretary of Ghana Federation of Labour, Mr Abraham Koomson said the union has observed a draft of the Excise Duty Amendment Bill, 2022 seen by their members, according to the framers, seeks to amend Excise Duty Act 2014 (Act 878) to revise the Excise tax rates for a number of products including all sweetened drinks and processed fruit juice which hitherto did not attract Excise Duty.
According to him, the members of the GFL see this attempt by government to further hype operational costs of local manufacturing business unfortunate.
“We find the introduction of this new Tax regime inimical to growth of the economy as it undermines job creation and denies the state of required revenue”he added.
The survival of the local industry is already threatened by the increase cost of production and the dwindling purchasing power of consumers.
Mr Koomson noted that just last week, the Bank of Ghana( BoG) in its determination to fight inflation, which stands at 54.1% as of December 31st 2022, increased its policy rate to 28%. This obviously means a higher cost of borrowing.
Again, value added tax has gone up by 2.5% alongside the BoG recent policy thereby suffocating manufacturing companies in the country.
Whilst organised labour expectations of well-crafted policies to protect local industries, Government has rather slapped and astronomical 30% increment in Electricity tariffs and about 50% on water for industry effective from 1st February 2023.
According to him, there is every reason to appreciate government determination to raise revenue to meet its statutory obligations, however, at this stage of the economic crisis facing the country, and when there is uncertainty about investments in bonds ahead of an agreement on the Domestic Debt Exchange Program, the introduction of such tax is not going to be healthy for Manufacturing industries.
The fuel prices still remain high and there is no clear sign about a downward trend as the cedi continue to depreciate against the dollar.
Mr Koomson reiterates that the Ghana Federation of Labour constituted by fourteen trade unions including the underlisted organisations vehemently oppose the Excise Duty Amendment Bill, 2022 in its current state.
“We look forward for engagement to clarify our position and pray your good office, together with parliament as a whole to consider this serious threat to the economy to save the current situation from getting worse” he stressed.
-Joseph Nana Yaw Cobbinah
