ICU says reintroduction of 17.5% VAT on banks will erode purchasing power of workers

The Industrial and Commercial Workers Union, ICU, Ghana, has called on government not to re-introduce the 17.5% VAT charges imposed on core and non-core banking services. 

In a letter copied to the Minister of Finance, the ICU said the law should be abrogated and not re-introduced. 

It quoted informed sources as saying there is nothing in the banking system called non-core activities. 

The letter jointly signed by its Chairman, Emmanuel Boateng, and General Secretary, Solomon Kotei, said proponents of the law did not make scientific assessment about the impact on the people and the economy. 

The ICU said when the tax is re-introduced it would erode the purchasing power of workers who are already paying income and other indirect taxes.

GNA