Gov’t parries taxation of Pensions claims

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The government has parried reports making the round in the media that it intends to tax the pensions of Ghanaians.

A statement issued by the Finance Ministry copied Myjoyonline said the government has no plan because the Income Tax Act, 2015 (Act 896) prevents it from doing so.

There were media reports that the government is putting some measures in place to tax pensions of Ghanaians.

The source of the information was attributed to the Finance Minister, Seth Terkper following an interview he granted on the sideline of a business summit he attended in Accra.

This has been a source of worry for many Ghanaians who believe their ‘meagre’ pension benefits will suffer more from the initiative.
But the ministry denied the Finance minister put out such information during his interview.

According to the ministry, “The reference to the pension income in his delivery was to explain the philosophy of taxation of pension adopted generally in literature and in countries that tax pensions.”

The statement further stated that the Article 199(3) of Ghana’s Constitution makes it impossible for pensions to be taxed in the country.

The Article states “The pension payable to any person shall be exempt from tax.”

 

Source: myjoyonline.com

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