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Business News of Wednesday, 23 July 2014

Source: Daily Guide Network

20 Factories threaten to shutdown

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The Industrial and Commercial Workers Union (ICU) has stated that over 20 companies in Tema have threatened to shut down if government fails to reduce excessive corporate taxes and address problems confronting the country’s economy.

According to ICU, the shutdown of BTI Limited, a steel company in Tema, led to the loss of over 200 jobs.

General Secretary of ICU, Solomon Kotei disclosed this while presenting a petition to the Mayor of Tema, Isaac Ashai Odamtten, which is expected to be forwarded to President John Mahama.

He claimed the closure of the said companies could affect about 4,000 workers.

He said the companies were facing “constant power outage and water shortage despite the continuous increase in tariffs, noting that the monies of workers in the 2nd Tier Contribution had not been released to fund managers or trustees for investment to benefit them.

According to Mr. Kotei, apart from taxes, duties and levies, which are having adverse effects on industries, the ineptitude of utility service providers had resulted in constant power outage and water shortages.

He said industries have been compelled to reduce production and maintain their workers.

The ICU General Secretary said trade liberalization policy, high inflation, fuel price increases and the dollarization of the country’s economy had negatively affected the country’s economy.

He called on government to immediately review the corporate taxes to enhance the growth of businesses.

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