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Business News of Thursday, 26 August 2021


Issues with overtime tax will be investigated and addressed – Bawumia assures

Mahamudu Bawumia, Vice President of Ghana Mahamudu Bawumia, Vice President of Ghana

Vice President Dr Mahamudu Bawumia has assured the Industrial and Commercial Workers Union (ICU) that issues relating to overtime tax will be investigated and addressed accordingly.

This was after the ICU told the head of the economic management team to initiate moves to scrap overtime tax.

General Secretary of the ICU, Mr Solomon Kotei had said overtime tax is serving as a disincentive to workers hence should be removed.

Most worrying for them is that for the past ten and half years there has not been any response to their request.

Mr Kotei said at the ICU’s 11 quadrennial delegates conference that “For almost a decade and a half now the ICU Ghana has been advocating scrapping overtime tax, appealing to government to have it expunged from the tax books since it constitutes a disincentive for workers.

“It is common knowledge that employers ask workers to do overtime to enable them to achieve production target that will not be achieved during normal working hours to push business and economy.

“When we do this and the employer declares bigger profit then the company tax also goes up for the government and then the government comes to those of us who suffer and tax us again. The sacrifices are just too much for us,” he said.

Dr. Bawumia assured them he would get the overtime tax addressed.

“We are all in this together and I am looking forewing to having discussions that Brother Solomon Kotei has talked about.

“I am hearing about the overtime tax issue, I am going to investigate it a bit more and see what it does mean. We want to do things and do them together. Our job is to make life easier for you,” he said.