Halt proposed 20 per cent excise tax on fruit juice to save jobs – Organized Labour 

Accra Feb 8, GNA – Ghana Federation of Labour (GFL) has stated that the proposed,introduction of 20 per cent excise tax on sweetened fruit drinks will be inimical 7 to growth of the economy as it undermines job creation and denies the State of required revenue.

“The survival of the local industry is already threatened by the increased cost of production and the dwindling purchasing power of consumers. 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.

A statement signed by Mr Abraham Koomson, Secretary General of GFL to the Speaker of Parliament said their attention had 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.

“ A draft of the Excise Duty Amendment Bill, 2022 seen by our members, according to the framers, seek 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”.

It said Value Added Tax had gone up by 2.5% alongside the BOG recent Policy thereby suffocating Manufacturing companies in the Country.

“while Organised Labour is expecting kwell-crafted policies to protect Local Industries, Government has rather slapped an astronomical 30% increment in Electricity tariffs and about 50% on water for Industry effective 1st February 2023.

“Thiere is every reason to appreciate Government’s 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 Programme, the introduction of such tax is not going to be healthy for the Manufacturing Industries.

,”Fuel prices still remain high and there is no clear sign about a downward trend as the Cedi continues to depreciate against the dollar.

“The Ghana Federation of Labour constituted by 14 Trade Unions including the underlisted Organisations vehemently oppose the Excise Duty Amendment Bill, 2022 in its current state”

 The 14 Unions are textile, Garment and Leather Employees Union (TGLEU), 

Food and Allied Workers Union (FAWU), General Manufacturing and Metal Workers Union (GEMM)

 National Union of TEAMSTERS and General Workers (NUTEG), Union of Education, Agricultural and General Workers (UNEAGES), Bogoso Gold Enterprise Based Union (BGEBU) and ICT & General Services Employees Union (ICT — GSEU)

The rest are Financial, Business and Services Employees Union (FBSEU), National Union of Agricultural Development Bank (NUadb) Senior Staff, Chirano Gold Mines Senior Staff Union (CSSU), Senior Staff Association of Judicial Service of Ghana (SSAJUG) and Amalgamated Labour Reform Union (A’LU)

“We cannot afford to sit on the fence and watch our members reel under the ever mounting TAXATIONS on local Manufacturing Industry. Companies have drastically reduced staff and we cannot wait for many more foldups.Wemake a passionate appeal to you and rely on your high office to consider the plight of workers and act to save the precarious situation since there weren’t broader consultations with stakeholders prior to the presentation of the Bill to Parliament”.

GNA