Tema District Council of Labour calls on government to review tax rates on workers

The Tema District Council of Labour (TDCL) of the Ghana Trades Union Congress is urging government to review taxes of the minimum wage of workers.

According to the council, the formal sector had been overburdened with tax since 2006, and for that matter, dealing with tax issues should be a collective decision of both government and the worker.

The Council made the call at a General Meeting organized for workers in the Tema Metropolis.

Mr Wilson Agana, Chairman of the TDCL, said government had departed from the norm of making the first 84 Ghana cedis of every salary tax-free to five percent tax.

He expressed regret about government’s failure to tax the informal sector, including importers and traders who make more profit.

Mr Agana said overtime working allowances, including end of pension benefit and other gratuities and bonuses should not be taxed.

Participants of the meeting who were worried about the situation were of the view that individual workers should be taxed based on the profit made after their expenditure just like companies.

They appealed to the Ministry of Finance and Economic Planning to review the tax rate by the end of November this year.

The union also discussed issues concerning the inability of the Tema Oil Refinery (TOR) to process crude oil.

According to Mr Bernard Entsiwah, Chairman of the local workers union of TOR, government had promised the refinery a working capital of GH¢200 million, to help stabilize its operations.

Source: GNA