Accra, 21 Nov 2025 – In a rare and emphatic endorsement, organised labour has praised the 2026 Budget for delivering meaningful tax relief that could ease the financial burden on businesses and boost industrial productivity.
The Ghana Federation of Labour (GFL) has particularly highlighted the reduction in effective VAT rates, the increase in VAT registration thresholds for SMEs, the abolishment of the COVID-19 Health Recovery Levy, and improved input-credit mechanisms for the NHIL and GETFund as measures that will enhance cash flow and strengthen competitiveness across key sectors.
However, the Federation is urging government to extend similar zero-VAT incentives to the edible oil and oil-palm processing industries, cautioning that without targeted support, Ghana risks further losing market share to imported vegetable oils.
According to the GFL, the tax reforms in the 2026 Budget represent a strong step towards lowering business costs. These include:
• Reduction in the effective VAT rate
• Higher VAT registration thresholds for SMEs
• Full removal of the COVID-19 Health Recovery Levy
• Zero-VAT support for priority industries such as textiles
• Elimination of cascading taxes through improved VAT input-credit rules for NHIL and GETFund
Speaking on Ahotor FM, GFL Secretary-General Abraham Koomson said the reforms, when combined with improvements in energy reliability and increased capital investment, “have the potential to improve cash flow for enterprises, raise productivity, and stimulate reinvestment across Ghana’s industrial sector.”
He further encouraged government to focus on strategic agro-processing value chains, particularly edible oils and oil-palm, where greater competitiveness is essential to protect local jobs, reduce import dependence, and enhance rural livelihoods.
As an organisation dedicated to the welfare of workers, the GFL emphasised that the success of these fiscal interventions must ultimately be judged by their impact on job creation, fair wages, safer workplaces, and stronger social protection systems.
The Federation is therefore calling on employers and government to commit to:
• Expanding local hiring
• Investing in skills development
• Modernising workplace safety practices
• Ensuring transparent reporting on job creation tied to policy incentives
With coordinated implementation and sustained engagement, the GFL believes the 2026 Budget could mark a turning point in strengthening Ghana’s industrial base while delivering real and measurable benefits for workers and the economy.
Story by: Emmanuel Romeo Tetteh(#RomeoWrites✍️)/Ahotoronline.com | Ghana 🇬🇭