The Ghana Federation of Labour(GFL) has raised concerns about the 2021 Budget Statement and Economic Policy.

The Federation in a statement signed by its Secretary-General, Abraham Koomson, said the new taxes will “affect the living standards of workers”.

The government of Ghana in its new budget introduced six new taxes.

These taxes include a COVID-19 Health Levy; 1% increase in National Health Insurance Levy and 1% increase in flat VAT rate as well as a 30 pesewas increase in fuel prices to take care of excess power capacity charges [20 pesewas] and Sanitation and Pollution Levy [10%].

The Federation of labour has therefore asked for a tripartite emergency meeting to address the fallout of the approved budget.

The Association of Ghana Industries (AGI) has also expressed similar concerns over these taxes.

The AGI fears these taxes may have a huge toll on the business community particularly at a time when players are reeling from the devastating effects of the COVID-19 pandemic.

Addressing a gathering on the post-budget analysis programme at the University of Professional Studies, Accra (UPSA) held on Thursday, the AGI advised government to reconsider the imposition of the taxes.

The President’s Representative at the Finance Ministry, Charles Adu Boahen has however justified the proposal for the new taxes, saying the move is to sustain the debts incurred by the government through the various COVID-19 interventions initiated by the Presidency.

Below is the press release: