President John Dramani Mahama has discounted reports in some sections of the media that government intends to introduce new taxes soon.
The President on his twitter handle on Thursday assured Ghanaians that his administration has no plans to undertake such a move.
Government has no intention of introducing new taxes.
— John Dramani Mahama (@JDMahama) June 1, 2016
His disclaimer comes after the Finance Minister Seth Tekper, at a Graphic Business forum argued for slapping of taxes on pension contributions within a certain period.
Speaking at the first Graphic Business Breakfast Series for this year, Mr. Terkper insisted that allowances must be taxed to prevent people from evading taxes.
“Yes allowances must be taxed. Allowances are income. The issue I know is a very difficult one, it’s about taxing income and if you do not define income broadly, you would have tax payers either through avoidance or hiding the income in areas which are not taxed. It’s a thorny one. But remember that as you make your social security contributions, they are exempted from tax even though it is part of your income,” the Minister explained.
Finance Ministry clarifies Terkper’s stance
The Ministry of Finance has subsequently clarified the Minister’s position after Ghanaians started reacting angrily to the news.
It said the media “misrepresented the comments of the Minister to say that income tax imposes a tax on pensions.”
It clarified that the reference to the pension scheme in his delivery was to “explain the philosophy of taxation of pension adopted generally in literature and in countries that tax pensions.”
The Ministry further insisted pensions are exempted from taxes per the laws of the land.
–
By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah