Mineworkers Union not happy with taxes on welfare packages

Accra, April 30, GNA - Ghana Mineworkers Union (GMWU) on Friday expressed worry over the imposition of taxes on

welfare packages, which managements of mining companies have instituted for workers. A statement signed by Mr Eric Kwabena Gyima, Deputy General Secretary of the Union and copied to the Ghana News

Agency to salute Ghanaian workers on the occasion of this year's May Day, said the decision by management was a

disincentive to hardworking. Citing an instance, Mr Gyima said: "When management of the mining companies provides workers a square meal a day,

they are not taxed, but. when it decides to convert it to a meal subsidy, it is taxed. There is no doubt this is a disincentive

to workers and employers". He said another source of worry to the GMWU was the decision to tax part of a loan interest that management decided

to pay on behalf of some category of mine workers who took car loans. Mr Gyima said: "Recently management of AngloGold Ashanti, informed GMWU that IRS has slumped taxed penalty on

the food package given to workers, the extent that the company paid one million dollars as tax just on the food package

for its employees. "The GMWU strongly feels situations like this only go to affect the ability of companies to come clean with workers'

Unions in terms of some of their demands aimed at improving the living standard of workers. "Because at the end of the day if some of these very welfare packages that the companies are willing and prepared to

put and roll out to help employees end up being taxed, the employers will see no motivation to initiate them and the

worker will be at the receiving end," Mr Gyima said. He said certain types of the taxes on welfare packages for workers needed to be reviewed since it could undermine

productivity. Mr Gyima, however, appealed to tax agencies to have a second look at the tax they impose on certain type of welfare

packages put in place by employers and workers unions. "Much as the Union is not against taxes, it is equally important that the agencies do not tax certain items, which

invariably will become a disincentive to increase productivity. "The GMWU believes that instead of imposing a lot of tax on workers in the formal sector, the vast informal sector

should equally attract the attention of tax administrators to ensure that they rope in a lot of cash from that sector. "It will help rather than putting the burden on a few salary workers in the formal sector," he said.