Tema-Ghana, May 5, CDA Consult – The Ghana Federation of Labour (GFL), has stated that government over-taxation is a major cause of unemployment, highlighting that most enterprises are on the verge of failure due to government over-taxation.
Mr. Abraham Koomson, GFL Secretary General explained that the government’s economic policies had a negative influence on some businesses, prompting some Ghanaians to lose their jobs and enter the labour market.
“Bad economic policies are destroying businesses and causing people to be unemployed,” Mr. Koomson stated in Tema on the Ghana News Agency’s Industrial News Hub platform.
Mr. Koomson reiterated the three new taxes: the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022, alleging that the new taxes will bankrupt the few remaining industries and businesses and render the majority of people unemployed.
The GFL Secretary General suggested that the government focus job creation over taxation since “the targeted revenue to be accumulated may not be achieved if businesses are overburdened with taxes.”
He stated that some businesses had ceased operations in order to examine market trends and consumer reactions to the increased taxes.
Development and Sustainability According to the government, the levy is meant to increase income in order to promote economic growth and fiscal sustainability. The levy is charged on the earnings before taxes of corporations and institutions, as well as on production in the case of mining and upstream oil and gas industries.
In 2023, revenue is estimated to be around 2.26 billion. The levy will be reviewed by the Minister of Finance in 2025.
The amendment to the Income Tax Act, 2015 (Act 896) is to revise the income tax rates for individuals and add an additional income tax bracket, to add a withholding tax rate on the realisation of assets and liabilities, as well as lottery winnings; to unify and revise the loss carried forward provisions.
It also plans to increase the optional rate for individuals on the gain from the sale of an investment asset, change the upper limits for calculating motor vehicle benefits, and increase the concessional income tax rates.
The Excise Duty Act, 2014 (Act 878) intends to revise excise duty rates for cigarettes and other tobacco goods in order to comply with the Protocols of the Economic Community of West African States (ECOWAS) and generate revenue to counteract the negative effects of these excisable commodities.
In order to increase revenue, it also proposes to hike excise duty on wine, malt drinks, and spirits, as well as levy excise duty on sweetened beverages, electronic cigarettes, and electronic liquids.
