Government approves tax on President’s salary, rejects levy on retirement benefits

The government has endorsed a recommendation by the Constitutional Review Committee (CRC) requiring the President to pay taxes on his salary and official allowances while in office but has declined a proposal to tax the President’s retirement gratuity and pension.

Attorney-General and Minister for Justice, Dr Dominic Ayine, announced the government’s decision on Thursday, July 30, during the presentation of the White Paper on the Constitutional Review Committee’s recommendations.

He explained that government supports the principle that the President should not receive tax exemptions simply because of the office he holds.

According to Dr Ayine, the President will be required to pay income tax on his salary and allowances, in addition to any applicable indirect taxes on goods and services, just like other taxpayers.

However, he clarified that government has rejected the committee’s recommendation to impose taxes on the President’s retirement gratuity and pension.

He noted that while the President’s tax obligations during his tenure have been accepted in principle, the specific details of how those taxes will be applied will be outlined in the country’s tax laws rather than the Constitution.

The Attorney-General said the government’s position forms part of its official response to the recommendations submitted by the Constitutional Review Committee, which was tasked with reviewing the 1992 Constitution and proposing reforms to improve governance, accountability and Ghana’s democratic system.

The committee’s proposals are expected to guide a series of constitutional and legislative amendments as the government begins implementing the outcomes of the constitutional review process.

 

Kwaku Antwi Boasiako