Ghana: 2019 Budget - Don't Introduce New Taxes - Tuc to Govt

The Head of Research at the Trades Union Congress (TUC) Dr Kwabena Nyarko Otoo has appealed to government not to introduce any new taxes in the 2019 budget.

He said government must introduce measures aimed at reducing the cost of living of Ghanaian workers.

Speaking on Morning Starr Friday, Dr. Otoo said there have already been increases in fuel, goods and services, transportation as well as telecommunication tariff hikes and any new tax will make life unbearable for the Ghanaian worker.

The TUC in a document submitted to the Finance Minister for input in the 2019 budget urged government not to impose any new taxes.

"If you read our proposals for the 2019 budget, we made it clear that the economy is growing per the figures from the statistical service and the Ministry of Finance. But it is not translating into the lives of people.

"We now have a situation of mass lay-offs particularly in the private sector. We also have a situation where taxes appear to be biting the ordinary Ghanaian. So, if you take even the telecommunication companies and their attempt to review their tariffs, they made mention of the fact that the tax regime is a key factor in the decision to do that," he said.

According to the TUC, the high cost of living brought about as a result of some government policies and imposition of taxes are eroding the income of workers.

Dr Otto explained that "in our review, or the media review of the economy, we actually also indicated and made mention of the fact that the delinking of the National Health Insurance levy and the Ghana Education Trust Fund levy from the main VAT could increase government revenue.

But because businesses will be unable to seek the refund, they are more likely to pass it on to consumers and this appears to be the case currently".

"So, for the ordinary worker, if you take those in the public sector for instance, having had about 10% wage increase for the year have now been slapped with a number of other increases", he added.

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