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Business News of Friday, 22 December 2006

Source: GNA

IRS urged to waive payment of retrospective tax

Accra, Dec. 22, GNA - The Maritime and Dockworkers Union (MDU) of the Trades Union Congress (TUC) has appealed to the Internal Revenue Service (IRS) to stop demanding the retrospective payment of taxes by casual workers of Ghana Dock Labour Company (GDLC). A resolution the National Executive Council (NEC) of MDU adopted at its 51st National Executive Meeting said: "NEC is of the view that payment of tax on wages of Casual Dockers with retrospective effect is not feasible and thus calls on the IRS to waive the tax arrears demanded from the Casual Dockworkers of GLDC."

The NEC noted that the Casual Dockers were in the past exempted from paying tax on their income because they were classified among the vulnerable sections of workers with irregular incomes and poor working conditions. The resolution, which Mr K. Owusu Afriyie, General Secretary of MDU signed, said until the Ghana Ports and Harbours Authority (GPHA) dispensed with their services, the Casual Dockworkers were not paying taxes and to ask them to pay taxes on wages that they had collected from 2003 to 2005 when they were transferred to GDLC would exert hardship on them.

The MDU said they "would be compelled to support solidarity actions of our broad membership if attempts are made to squeeze the tax arrears from our Poor Brothers and Sisters". The resolution appealed to the Government to provide the needed resources to facilitate the work of the Fair Wages Commission and urged the Management of Social Security and National Insurance Trust (SSNIT) to ensure that companies in the Maritime Sector paid the contributions of workers regularly.

The resolution said the NEC was of the view that the frequent accidents on the Volta Lake could be attributed to the absence of effective implementation of safety regulations, the presence of tree stumps in the Lake and overloading. It suggested that the institution of safety measures should form part of a comprehensive programme to remove stumps from the Volta Lake; safety education; checking of overloading; standardisation of number of passengers and load on boats and the mandatory use of safety jackets by all passengers. It expressed its preparedness to contribute to concerted efforts to prevent the accidents on the Lake. The Resolution noted the role the Volta Lake Transport Company was playing in transporting petroleum products to the Northern Sector and called for the appointment of a substantive Chief Executive Officer (CEO) for the Company.

The MDU asked agencies charged with the responsibility of protecting the environment to work hard to convince the general population that they were up to their tasks, especially in the mining areas. It urged the Government to develop solar energy to supplement electric power generation, notwithstanding the initial cost. The NEC commended the Government for presenting the 2007 Budget Statement on time; the improvement in the domestic economy; the reduction in the HIV/AIDS prevalence rate. The resolution appealed to the Chief Justice to ensure the conclusion Obourwe Workers Case, which it said had been pending at the Supreme Court for a very long time.