The Trades Union Congress says given the massive loss of employment and incomes, the tax approach recovery introduced in the 2021 Budget is economically risky. It said tax that pushes petroleum prices up will reverberate through the economy and make life even more difficult for many Ghanaians.
A statement by the TUC on its Preliminary Assessment of the Budget said the Congress is therefore calling for a re-examination of Tax Exemptions and abolishing of those that have outlived their usefulness.
It said there must be a comprehensive review of benchmark values used to calculate import tariffs, fees and levies at the ports and an increase in the benchmark values for all products that have local substitutes which have the potential to raise revenue and support the import-substitution agenda under the Ghana-CARES programme.
On unemployment, the statement said TUC will work with Government and other social partners towards the establishment and smooth operations of the National Unemployment Insurance Scheme and Training and Retraining Programmes as this is in line with its call for a strong social protection system that offers assistance to people in times of crisis.
It said it is appalling that 81 percent of workers who retired in 2020 experienced shortfalls in their lump-sum, compared to the lump-sum they would have received under PNDC Law 247, meaning those retiring in 2021 and beyond are likely to suffer the same fate.
It said it is heart-warming that Government has already approved a top-up of lump-sum benefits for retirees, following TUC’s petition to the President to intervene and urged it to speed up the release of the lump-sum top-up to be paid to eligible retirees in the first half of this year.
On employment and incomes, the TUC acknowledges efforts by Government to preserve jobs and protect incomes in the public sector with the injection of 750 million dollars to support enterprises in the form of the Coronavirus Alleviation Programme.
However, the Budget is silent on the kind of aggressive employment-creation strategies expected in this crisis situation.
The TUC, therefore, called on Government to address challenges that continue to destroy jobs and hamper the growth of domestic enterprises.
