The Secretary-General of the Ghana Federation of Labour (GFL), Abraham Koomson, has cautioned the government against introducing new taxes and levies, warning that the measures could stifle industrial growth, increase the cost of doing business, and place an additional burden on workers and consumers.
Speaking on Ahotor FM on Saturday, June 28, Mr. Koomson said the growing tax burden on businesses was becoming a major obstacle to economic growth and job creation.
He urged the government to reconsider what he described as “nuisance taxes,” including the fumigation levy, the Import Declaration Form (IDF) levy, and the proposed cargo levy, arguing that such charges would further raise operating costs for businesses.
“We have very serious issues with taxation and the new levies being contemplated, specifically the nuisance taxes such as the fumigation levy, the IDF levy, and the cargo levy,” he said.
Mr. Koomson also questioned the transparency surrounding the collection and use of revenue generated from some of the levies.
He alleged that available information suggests that the proceeds may be benefiting a cartel rather than the state.
“We do not even know who benefits from the revenue generated through these taxes.
Our information is that there is a cartel behind this perceived government policy, and the state is not directly benefiting from it,” he claimed.
His comments come after the Public Utilities Regulatory Commission (PURC) announced new utility tariff adjustments, with electricity tariffs set to increase by 3.49 percent and water tariffs by 0.85 percent, effective July 1, 2026.
The PURC said the increases were part of its quarterly tariff review mechanism and reflected changes in inflation, exchange rate movements, and operational generation costs. The Commission maintained that the adjustments are necessary to ensure the financial sustainability of utility providers, including the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).
However, Mr. Koomson argued that operational inefficiencies within ECG, rather than genuine cost increases alone, are a major contributor to the tariff hikes.
According to him, research conducted by the GFL indicates that about 35 percent of electricity consumers do not pay for the power they consume, resulting in significant revenue losses for the power distributor.
“Our research also reveals that about 35 percent of electricity consumers are not paying, and other inefficiencies at ECG account for the tariff adjustments,” he stated.
He maintained that consumers and businesses should not be made to shoulder the financial burden of inefficiencies within state institutions.
Mr. Koomson warned that rising utility tariffs, combined with existing taxes and levies, are placing enormous pressure on manufacturers and other businesses, increasing production costs, reducing competitiveness, and threatening industrial growth.
“This situation threatens industrial growth, as manufacturing industries are already overburdened with high production costs,” he said.
The GFL Secretary-General therefore called on the government, the PURC, and utility providers to address revenue leakages and operational inefficiencies within ECG and other public institutions before imposing additional tariff increases on consumers and businesses.
