GFL demands immediate halt, review of nuisance levies

Mr Abraham Koomson, Secretary-General of the Ghana Federation of Labour (GFL), on Sunday demanded an immediate halt and review of nuisance levies, as well as suspension of the fumigation levy, Import Declaration Form (IDF) levy, and cargo levy.

“Government must hold on pending a public, auditable review of revenue flows, beneficiaries, and economic impact on SMEs and manufacturers,” Mr Koomson told Modern Ghana News in Tema.

The labour expert was responding to the recent announcement by the Public Utilities and Regulatory Commission (PURC) of a 3.49 per cent increase in electricity tariffs and a 0.85 per cent increase in water tariffs.

The Commission said the quarterly review reflects inflation, cedi-dollar movements, and generation costs and that the adjustment is required to ensure the financial sustainability of the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).

Mr Koomson rather called on the government to fix ECG leakages before tariff increases, "We cannot be pouring water into a leaking tank and expect to fill it,” calling for implementation of aggressive loss reduction, metering, and prosecution of power theft to recover the estimated 35 per cent revenue gap.

“Labour insists that tariff policy must follow, not precede, operational reform,” Mr Koomson stated.

Mr Koomson also called on the government to protect manufacturing competitiveness and urged the government to introduce targeted relief for industries, including reduced energy costs for productive sectors, to prevent job losses and import substitution by cheaper foreign goods.

He also called on the government to publish quarterly reports on levy collection and expenditure, with labour representation on oversight committees to ensure revenue funds job creation, skills training, and social protection.

“Pair any unavoidable tariff adjustment with targeted subsidies or lifeline tariffs for low-income households to prevent energy poverty and protect real wages,” he stated.

Mr Koomson stated, "For the GFL, taxation and utility policy are not technical matters only; they determine whether factories remain open, whether apprentices are hired, and whether families can afford light and water.

“Continuous increases in utility costs, coupled with existing taxes and levies, are placing enormous pressure on industries, particularly manufacturers.”

Mr Koomson maintained that "higher utility tariffs will inevitably increase production costs, reduce competitiveness, and threaten the growth of local industries.”

Mr Koomson rejected the premise that consumers alone must close the revenue gap. Citing GFL research, he said, "About 35 per cent of electricity consumers are not paying, and other inefficiencies at ECG account for the tariff adjustments.”

“Consumers and businesses should not be made to bear the cost of inefficiencies within state institutions. This situation threatens industrial growth, as manufacturing industries are already overburdened with high production costs,” he stated.

The GFL is therefore calling for an interventionist approach that prioritises efficiency, equity, and industrial survival over blanket cost recovery.

He said Ghana cannot tax or tariff its way out of inefficiency, adding that a progressive economic path requires plugging revenue leakages, confronting cartels, and putting workers and productive enterprises at the centre of fiscal policy.

The GFL therefore called on government, PURC, ECG, and GWCL to engage organised labour in immediate consultations to redesign the tax and tariff framework before July 2026.