Miners Voice Strong Opposition to Debt Exchange Plan
The Lowdown on Ghana's Tax Hikes and Miners' Unrest
Here's the skinny on the recent tax adjustments causing a stir among Ghana's working folks, particularly the mining sector. Ideas whether these changes are good egg stratanglers or necessary evils are swirling like wildfire.
First off, let's chat about the big scratch: increasing income tax from 30% to 35% and the VAT bump up from 12.5% to 15%. Some argue that these increases exacerbate the financial struggles of our people and households.
Enter the Ghana Mineworkers' Union (GMWU), who aren't shy about opposition to these hikes, notably the 35% income tax jump. They see it as squeezing the proverbial golden goose, given the already strained state of workers amid soaring inflation, cedi devaluation, and pricy goods.
"The average John Doe can't handle these financial pressures any more," GMWU's bigwig, Abdul-Moomin Gbana, declared at a recent Union meeting.
Some are questioning the timing of these tax tweaks, too. Many believe the government should've reconsidered overburdening the tiny 10% of taxpayers—all formal employees—already juggling several taxes.
But that's not all. The GMWU's riled up about a recently launched one-sided Domestic Debt Exchange Programme—a hot topic sparking controversy and social unrest. The programme is rumored to impact pensions, life savings, and investor confidence in Ghana's economy.
"Miners are worried about their pensions and investments crumbling," Gbana shared. This concern comes after President's assurance in October 2022 that pension funds and individual bondholders would be safe—a promise the union claims is slowly being scrapped.
"The signs are clear: pension funds and individual savings are at risk," Gbana emphasized. The union disapproves of any programme impacting pensions and savings. They want a firm guarantee that their hard-earned benefits won't vanish in the debt restructuring shuffle.
Now, the state of the mining biz is a bone of contention. After over a century of mining, Ghana's industry is still under foreign control. Over 99% of companies are foreign, owning 90% of the shares, leaving the government with a meager 10%.
The union believes Ghana's reliance on a "tax-royalty" fiscal regime has been a letdown. They argue that the regime's loopholes deny the country a fair share of revenue, and it's time for a change.
In short, while tax hikes are a tough pill to swallow, workers fear they'll bear the brunt. The mining sector's future remains uncertain with ongoing foreign control, and the union isn't backing down without a fight to protect their members' pensions and savings in the debt restructuring programme.
- The Ghana Mineworkers' Union (GMWU) expressed concerns about the impact of Ghana's newly implemented tax hikes on employment in various sectors, particularly the mining industry.
- The GMWU also raised concerns about the Domestic Debt Exchange Programme, fearing it could jeopardize pensions and investments in Ghana's economy.
- The union contends that Ghana's reliance on a "tax-royalty" fiscal regime has denied the country a fair share of revenue, and they advocate for a change in the approach to development and finance.
- The ongoing debates in the general-news revolve around the necessity of these tax hikes for the overall health of Ghana's economy, the potential employment repercussions, and the government's approach to fiscal policy.
- Despite concerns about the economic impact on the mining sector and employment, discussions about potential business opportunities and investment possibilities persist, highlighting the intersection of politics, finance, and economics in Ghana.
