Single Digit Inflation Means Nothing To Us…. ICU

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The Industrial and Commercial Workers Union (ICU) has hailed the drop in inflation to 9.6 per cent (April) from 10.4 per cent (March), but has noted that workers are measured in celebrating the development because “we are still paying the same level of taxes; there’s been no reduction.”

General Secretary, Solomon Kotei told Business Finder the decline in inflation will support efforts by government and the Bank of Ghana to pursue growth “which is welcome but we are wondering the impact this will have on our disposal income.”

The standard of living for workers, he observed hadn’t changed, noting “prices of goods and services remain the same and there is no room for us to make any savings.”

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Inflation for April 2018 dropped to its lowest in more than five years as announced by the Ghana Statistical Services (GSS) last week.

The significant drop was attributed largely to happenings in the non-food basket.

“We are aware that this will play a key role in the management of the exchange rate which will in turn help businesses to plan better,” the ICU boss reckoned.

He lamented the high lending rates, in spite of the significant easing by the central bank, which he contended had failed to reflect on the economy.

Even though workers may enjoy some security in terms of the fact that employers will reduce their costs, it may not translate into meaningful benefits for the workers.

ICU’s expectations

Beyond the decline in inflation, it must reflect on the prices of goods and services, “especially prices of goods manufactured here must be affordable.”

Government must show commitment in relieving workers off the tax burden and rather cast its net wider to rope in the untaxed.

Mr Kotei reiterated his call for the Ghana Revenue Authority to find innovative ways of broadening the tax net and refrain from burdening workers who are already meeting their tax obligations.

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