Secretary-General of the Ghana Federation of Labour (GFL), Abraham Koomson, has called on the government to address excessive taxation and smuggling, warning that these challenges continue to undermine local industries and threaten employment opportunities. He argues that Ghanaian manufacturers are struggling to compete with imported products due to significant production costs and multiple tax obligations.
According to Mr Koomson, some imported goods allegedly enter the country without payment of the appropriate duties, giving them a cost advantage over local products. He identified this situation as a major obstacle to industrial recovery, insisting that local manufacturers cannot compete fairly when their imported counterparts enjoy such advantages through alleged tax evasion and smuggling.
Mr Koomson raised concerns about goods entering Ghana through neighbouring countries, including Togo, without going through approved entry points or meeting the required tax obligations. He urged the government to strengthen import controls and close loopholes in the tax administration system to ensure that businesses operating in Ghana compete on a level playing field.
Drawing on his experience in the industrial sector since 1971, Mr Koomson recalled a period when factories operated three shifts, with some manufacturing activities running around the clock. He questioned how the country moved from that level of industrial productivity to a situation where several factories were struggling to survive or had completely collapsed.
Mr Koomson attributed part of the decline to excessive taxation and the influx of smuggled goods, which made it increasingly difficult for locally manufactured products to compete. He also recalled the difficult circumstances workers faced during the decline of the industrial sector, explaining that organised labour had to mobilise workers and demonstrate to draw attention to threats facing their jobs and the survival of factories.
Mr Koomson warned that Ghana must avoid repeating the mistakes that contributed to the collapse of industries, particularly as the government seeks to revive manufacturing through its 24-hour economy initiative. He maintained that reducing the tax burden on businesses, tackling smuggling, and protecting local manufacturers would be critical to rebuilding the industrial sector, attracting investment, and creating sustainable employment.
The Ghana Federation of Labour Secretary-General's comments come as the government seeks to revive the country's industrial sector. His experience and concerns highlight the need for a level playing field for local manufacturers to compete with imported products, and for the government to address the root causes of the decline of industries in Ghana.
Key points
- Addressing excessive taxation and smuggling is crucial to reviving local industries and protecting employment opportunities in Ghana.
