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Overtaxing Investors: A Threat to Ghana’s Economic Development, Says Ghana Federation of Labour

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The Ghana Federation of Labour (GFL) has expressed concerns over the consistent introduction of new taxes in Ghana, stating that it poses a threat to the country’s economic development. According to Mr. Abraham Koomson, the Secretary General of GFL, the numerous taxes could have an adverse effect on the operations of companies, which in turn could negatively impact the standard of living of Ghanaians.

Mr. Koomson further emphasized that the introduction of these taxes could compel companies to move out of the country, which would increase unemployment and adversely affect government revenue, and its development programs. He urged the government not to discourage foreign investment in the country, even if local companies were not revived.

The GFL Secretary General also cautioned the government about the implications of the Excise Duty Bill of 2022 on the manufacturing industries, stating that it would cripple companies and increase unemployment. He stressed that the new laws were passed without proper consultation and urged the government to consider the fate of workers whose job security is guaranteed if industries break even.

Mr. Koomson highlighted that the high cost of unit prices triggered by factors such as water and electricity tariffs, high import bills for raw materials, and the depreciation of the Ghana Cedi, were already making the products on the market barely affordable. He added that companies had to adjust salaries of workers and 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.

In conclusion, the GFL calls on the government to take into account the impact of taxes on the operations of companies and the welfare of Ghanaians. It is essential to create a conducive environment for businesses to thrive, promote job creation, and sustainable economic development.

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